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| Copper Prices |
Copper Price Falls Sharply After Record Highs
Copper price fell to $5.613/lb on COMEX Monday, down nearly 3% from last week’s high near $6/lb. Meanwhile, the LME’s three-month copper contract declined over 1% to $9,769.50/ton. These pullbacks followed a surge in prices as traders rushed shipments to the US before the August 1 tariff implementation.
Tariff Uncertainty Drives Volatility
However, traders remain uncertain about the scope and enforcement of the planned 50% US copper tariff. The Trump administration has not yet clarified product categories, country exemptions, or rules for in-transit cargoes. As a result, the market remains volatile, with US copper premiums spiking but not fully pricing in the new duty.
Macroeconomic Signals Also in Focus
In contrast, broader market sentiment hinges on upcoming US Federal Reserve guidance. While interest rates are expected to remain unchanged, policy language may influence commodity flows. Therefore, copper price volatility could persist beyond the tariff deadline, with speculative positions likely to remain elevated.
ScrapInsight Commentary
The copper price correction reflects short-term repositioning ahead of regulatory action. If tariffs are strictly applied, US scrap and refined copper demand could shift significantly. Policy clarity and freight logistics will determine whether this is a price peak or the start of sustained revaluation.
