Copper futures eased to around $4.82 per pound on Thursday, continuing to trade within a narrow range for the past two weeks as markets balanced tightening supply against the risk of a price correction. Available inventories have plunged 80% this year, partly driven by a surge in US imports ahead of anticipated tariffs. However, analysts caution that once tariff details are confirmed, the front-loading of imports could reverse, triggering a prolonged destocking cycle in the US.
Adding to the cautious tone, geopolitical tensions remained elevated as the Israel-Iran conflict intensified, with reports suggesting the US may be preparing for a potential strike on Iran. Meanwhile, the Federal Reserve kept interest rates unchanged and maintained a cautious outlook, warning that President Trump’s tariffs could reignite inflation and complicate the path forward for monetary policy.
