2025.04.1108:26:03UTC+00Copper Extends Rebound from 3-Month Low

Copper futures in the United States climbed above $4.4 per pound on Friday, continuing their recovery after reaching three-month lows of $4.05 earlier in the week. This rise came as markets evaluated supply concerns against the potential for decreased manufacturing demand, following a series of tariffs imposed by President Trump. In a move to stimulate a recovery in base metals, the President reduced the reciprocal tariff package for non-retaliating countries for a 90-day period, minimizing disruptions to factory supply chains. Despite this, copper futures remain 20% below their record high of $5.3, achieved on March 26th, as President Trump indicated an intent to impose tariffs specifically targeting copper in the coming weeks. This announcement has increased the premium of US copper futures compared to similar contracts on the London Metal Exchange (LME), due to the anticipated pressure trade barriers would exert on the already limited US copper smelting capacity. Additionally, the trade conflict with China has intensified, resulting in higher tariffs from both sides and straining the consistent flow of copper scrap exports from the US to China.