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Business Recorder
5 hours ago
- Business
- Business Recorder
US copper tumbles on tariff news
LONDON: US copper prices registered the biggest one-day decline on record on Thursday as investors scrambled to adjust positions after a surprise move by US President Donald Trump to exclude widely traded refined metal from 50% import tariffs. 'The impact of the Trump announcement ... was seismic,' said Marex analyst Ed Meir. US September Comex copper futures tumbled 22% to $4.36 per lb, or $9,613 a metric ton, by 1430 GMT, having touched a record peak of $5.92 a week ago. After Trump announced an investigation into copper tariffs in February, US prices climbed and huge flows of copper were shipped there to take advantage of the premium. But details released late on Wednesday said 50% tariffs would be applied to semi-finished copper products, excluding copper cathodes and input materials such as ores. Copper trading on major exchanges is based on cathodes, the result of processing copper. 'I'd imagine it's a disaster for some people,' said Dan Smith, managing director at Commodity Market Analytics. 'You spent all this money getting stuff across to America and then, it's going to have to sit there, isn't it?' Benchmark three-month copper on the London Metal Exchange dropped 1% to $9,602 a ton. The slide in Comex prices flipped its premium over LME, which had traded at about $3,000 a ton last week, to a slight discount on Thursday. If LME prices settle at a healthy premium to Comex, that could further boost LME copper inventories, which have already jumped about 50% over the past month. 'LME stocks could now rise much quicker on direct deliveries of US copper to US LME warehouses if price differentials attract it,' JP Morgan said in a note. Copper prices are likely to remain weak in the short term, partly owing to a seasonal lull in demand, Smith said. The most-traded copper contract on the Shanghai Futures Exchange eased 1.3% to 78,040 yuan ($10,850.95) a ton. Also weighing on prices was data showing that manufacturing activity in top metals consumer China shrank for a fourth month. Among other metals, LME aluminium fell 1.2% to $2,569 a ton, zinc eased 1.1% to $2,754, nickel dropped 0.7% to $14,920 and lead was down 1.2% at $1,968 while tin retreated 1.9% to $32,715.
Wall Street Journal
17 hours ago
- Business
- Wall Street Journal
Copper Prices Decline on Surprise U.S. Tariff Exemption
1407 GMT – Copper prices fall as the U.S. introduces a surprise exemption for refined metal in its copper products tariff. LME three-month copper is down 1.1% at $9,622.0 a metric ton. Prices on U.S. commodities exchange Comex plummeted more than 20% on the exemption news, which will have left some U.S.-based commodity trading funds long on physical metal, SP Angel analysts say in a note. Traders had spent months directing flows of copper into the U.S. in order to frontload the expected tariff. This significantly pushed up the U.S. premium for the metal but that is now rapidly unwinding, SP Angel says. There has been very little trading of copper within the U.S., so much of the loss from long position holders will likely be on import and storage costs, analysts add. ( 1149 GMT – Gold futures rise, recovering from losses in the prior session as the U.S. dollar marginally softens. Futures are up 0.2% at $3,358.10 a troy ounce. Gold prices are 2.8% lower on week, however, on a dollar rally following a raft of U.S. trade deals. A stronger dollar makes dollar-denominated bullion more expensive for international purchasers and directly competes with gold's safe-haven characteristics. Still, gold is up significantly year-to-date, predominantly reflecting central bank purchases, SP Angel analysts say in a note. These purchases have been driven by foreign reserve diversification efforts in the wake of the Russian invasion of Ukraine and related sanctions, the analysts write. This diversification into gold is likely to continue given monetary weaponization, persistent China-U.S. geopolitical tensions and mounting debt concerns in many Western countries, SP Angel adds. (
News18
17 hours ago
- Business
- News18
Copper futures plunge 4 pc to record low on US tariff announcement
Agency: PTI Last Updated: New Delhi, Jul 31 (PTI) Copper futures on the MCX slumped 4 per cent to touch a record low of Rs 861.70 per kilogram on Thursday after the US administration announced a steep 50 per cent tariff on imports of semi-finished copper and copper-based products, effective August 1. On the Multi-Commodity Exchange (MCX), the August contract of copper declined sharply by Rs 35.9 or 4 per cent to hit a record low of Rs 861.70 per kilogram. Subsequently, the September contract also fell by Rs 35.95 to touch a historic low of Rs 866.45 per kilogram on the commodities bourse. A White House executive order, dated July 30, said that copper is being imported into the US in quantities and under circumstances that threaten to impair national security. '…all imports of semi-finished copper products and intensive copper derivative products…shall be subject to a 50 per cent tariff. This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 1, 2025, and shall continue in effect, unless such action is expressly reduced, modified, or terminated," it said. Meanwhile, India exported copper products worth USD 360 million to the US in FY2025, including plates, tubes, and other semi-finished forms. These shipments will now be more expensive in the US. India is a net importer of copper, with imports totalling USD 14.45 billion in 2024-25, far outweighing its exports. Its main suppliers include Chile, Indonesia, and Australia. Notably, India also imported USD 288 million of copper scrap from the US, which may now become less viable due to disrupted bilateral copper flows. The impact of the US tariff was felt across the overseas markets, with copper futures on the Comex in the US plunging nearly 22 per cent to USD 4.38 a pound, marking the largest single-day decline on record. On the London Metal Exchange (LME), copper for October delivery decreased by 1.02 per cent to USD 9,698.50 a tonne. Analysts said the move by the US administration to impose tariffs on semi-finished copper products has introduced volatility in the market, with fears of disruption to trade flows and increased uncertainty in the industrial metals sector. Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services, said the impact on India from the new US tariff is expected to be limited as exports of semi-finished copper products to the US were worth around USD 360 million in FY25, forming a small fraction of the country's total copper trade. Singh noted that India is a net importer of copper, sourcing mainly from countries like Chile and Indonesia, which are not directly affected by the US tariff. However, she pointed out that the global copper trade could face temporary disruptions. 'Internationally, the redirection of copper trade could temporarily ease global benchmark prices due to oversupply pressures elsewhere. In the medium term, supply chain realignments and a rise in geopolitical tensions may increase the risk premium on global copper prices," she said. Heena Naik, Research Analyst, Currency at Angel One, said copper prices, which had been on an uptrend, reversed course dramatically in just two days. Naik added that President Trump's earlier hints in February and July about possible tariffs had prompted a surge in shipments of copper products to the US, pushing premiums higher. 'This imposition of tariffs is likely to have a direct impact on neighbouring countries like Mexico and Canada and indirectly on China, which is the world's largest producer of copper products. It could also disrupt the global copper supply chain and price system," she said. According to Yash Sawant, Commodity Fundamental Analyst at Choice Broking, the tariff decision has caused copper to accumulate in US warehouses while tightening inventories elsewhere. 'This growing supply imbalance is already driving domestic premiums lower. The surplus in the US could lead to re-exports or a reduced import appetite for related copper products, potentially disrupting traditional trade routes and putting downward pressure on global premiums," Sawant added. PTI HG HG BAL BAL (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 31, 2025, 19:30 IST News agency-feeds Copper futures plunge 4 pc to record low on US tariff announcement Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Reuters
17 hours ago
- Business
- Reuters
US futures rise on earnings boost, yen gives back post-BOJ gain
LONDON/SINGAPORE, July 31 (Reuters) - U.S. futures rose on Thursday, outperforming other markets as traders mulled a raft of economic indicators including central bank rate decisions, inflation data and last-minute trade deal talks ahead of U.S. President Donald Trump's August 1 deadline. The next data point is U.S. PCE inflation data, the Federal Reserve's preferred gauge, which will be parsed for signs of any effect of Trump's policies on inflation. The Fed kept rates steady on Wednesday, and chair Jerome Powell said it was necessary to wait for more data before its next move, drawing further criticism from Trump on Thursday. U.S. share futures were trading sharply higher ahead of that data on Thursday, boosted by better-than-expected results from Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab after the bell on Wednesday. "Meta and Microsoft have delivered the kind of earnings most companies can only dream of,' said Dan Coatsworth, investment analyst at AJ Bell. "They've smashed market forecasts by a country mile and caused investors to scream with joy." Nasdaq futures were 1.25% higher and S&P 500 futures up 0.9%. , Earnings were also in focus in Europe, where the region's banks (.SX7P), opens new tab rose 0.75% on Thursday after positive results from France's Societe Generale ( opens new tab, while defence names rose 2.9% (.SXPARO), opens new tab thanks to a surge in Rolls-Royce. (RR.L), opens new tab The broad Stoxx 600 (.STOXX), opens new tab benchmark was flat however, weighed down by miners after U.S. September Comex copper futures tumbled 22% to $4.37 a lb. That was the biggest fall on record after Trump said the U.S. would impose a 50% tariff on copper pipes and wiring, though this fell short of the expectation of sweeping restrictions. Chinese stocks also retreated after official PMI gauges showed weaker than expected economic activity in July. China's blue chip CSI 300 ended 1.8% lower, its biggest single day drop since April 7, and Hong Kong's (.HSI), opens new tab index closed 1.6% lower. Earlier in the day there was lots to digest in Asia where the Bank of Japan held interest rates steady and increased its inflation forecast, casting cautious optimism on Japan's economic prospects. Japan's shorter-dated bond yields at one point rose to their highest since early April, but walked that back after the BOJ's policy statement led market participants to scale back expectations for any future interest rate hike. The yen also relinquished early gains and was last weaker on the day at 149.783 per U.S. dollar, its softest since early April, while the Nikkei index (.N225), opens new tab closed up just over 1%. The dollar's gains on the yen were cancelled out by losses on the euro, which rose 0.37% as traders pared back bets on European Central Bank rate cuts, sending short-dated bond yields higher. Investors in Asia also considered the implications of a trade deal between the U.S. and South Korea as well as whether Trump's initial announcement of a 25% tariff for India should be taken seriously, especially as it was announced in the middle of trade negotiations. Shares in India recovered earlier losses, with the benchmark Nifty 50 (.NSEI), opens new tab just in positive territory. The Korean won gained 0.3% after Trump said the U.S. would charge a 15% tariff on imports from South Korea, which would in return invest $350 billion in U.S. projects and purchase $100 billion in U.S. energy products. The announcement is the latest in a series of trade deals rushed out before Friday's deadline to avert the imposition of Trump's April 2 "Liberation Day" tariff blitz. Brent crude futures for September , set to expire on Thursday, declined 40 cents to $72.86 a barrel. U.S. West Texas Intermediate crude for September CLc1 fell 33 cents to $69.66. Both benchmarks chalked up 1% gains on Wednesday.
Business Recorder
18 hours ago
- Business
- Business Recorder
US copper tumbles on tariff news, LME erodes on tepid demand
LONDON: US copper prices registered the biggest one-day decline on record on Thursday as investors scrambled to adjust positions after a surprise move by US President Donald Trump to exclude widely traded refined metal from 50% import tariffs. 'The impact of the Trump announcement … was seismic,' said Marex analyst Ed Meir. US September Comex copper futures tumbled 22% to $4.37 a lb, or $9,681 a metric ton, by 1130 GMT, having touched a record peak of $5.92 a week ago. After Trump announced an investigation into copper tariffs in February, U.S. prices climbed and huge flows of copper were shipped there to take advantage of the premium. But details released late on Wednesday said 50% tariffs would be applied to semi-finished copper products, excluding copper cathodes and input materials such as ores. Copper trading on major exchanges is based on cathodes, the result of processing copper. 'I'd imagine it's a disaster for some people,' said Dan Smith, managing director at Commodity Market Analytics. Copper slips to over one-week low on tariff, demand worries 'You spent all this money getting stuff across to America and then, it's going to have to sit there, isn't it?' Benchmark three-month copper on the London Metal Exchange was down 0.7% at $9,631 a ton. The slide in Comex prices flipped its premium over LME, which had traded at about $3,000 a ton last week, to a $4 discount on Thursday. If LME prices settle at a healthy premium to Comex, that could further boost LME copper inventories, which have already jumped about 50% over the past month. 'LME stocks could now rise much quicker on direct deliveries of U.S. copper to U.S. LME warehouses if price differentials attract it,' JP Morgan said in a note. Copper prices are likely to remain weak in the short term, partly owing to a seasonal lull in demand, Smith said. The most-traded copper contract on the Shanghai Futures Exchange eased 1.3% to 78,040 yuan ($10,850.95) a ton. Also weighing on prices was data showing that manufacturing activity in top metals consumer China shrank for a fourth month. Among other metals, LME aluminium lost 0.7% to $2,583 a ton, zinc eased by 0.8% to $2,763.50, nickel dipped 0.4% to $14,960 and lead was down 0.9% at $1,973.50 while tin retreated 2.2% to $32,630.
