Copper Holds Near 3-Month High on Tariff Risks

Copper futures held above $5.10 per pound on Thursday, hovering near a three-month high as tightening global supplies and tariff-related uncertainty fueled buying interest. Traders have been redirecting copper shipments to the US ahead of possible import tariffs, leading to notable inventory drawdowns at both the London Metal Exchange and Shanghai Futures Exchange. Speculation is growing around a potential 10% levy on US copper imports, widening the price gap between Comex and LME copper contracts—currently around $1,300 per ton. However, analysts warned that the recent rally could reverse swiftly if US demand weakens or if tariff announcements disappoint expectations. Meanwhile, copper prices continue to draw support from solid demand prospects in China. A private survey showed that Chinese manufacturing activity unexpectedly returned to growth in June, suggesting that the world’s largest copper consumer may be benefiting from easing trade tensions with the US.