Copper Prices Surge Over $4.4 per Pound Amid Market Optimism

2025-04-14 economy

United States, Sunday, 13 April 2025.
Copper futures in the U.S. have rebounded, reaching over $4.4 per pound, as global markets adjust to economic growth expectations and industrial demand assessments amid tariff reductions.

U.S. Copper Market Dynamics

Copper futures in the United States have experienced a significant rebound, rising above $4.4 per pound as of Friday, April 11, 2025. This increase comes after copper hit its lowest value in three months at $4.05 earlier in the week. The price recovery reflects investor optimism following the reduction of reciprocal tariffs on non-retaliating countries by President Trump for the next 90 days. This policy aims to mitigate the impact of trade restrictions and stimulate the base metals market while maintaining smaller supply chain disruptions for manufacturers [1][2].

Impact of Trade Policies

Despite the recent price increase, copper futures remain 20% below the record high of $5.3 per pound reached on March 26, 2025. The U.S. market is under pressure from anticipated tariffs specifically targeting copper, as mentioned by President Trump. This anticipation has led to a premium on U.S. copper futures compared to contracts in the London Metal Exchange (LME), exacerbated by limited U.S. copper smelting capacities [1][2]. The ongoing trade tensions with China, resulting in increased tariffs from both countries, further intensify the situation by impacting the flow of copper scrap between the U.S. and China [2][3].

Market Expectations and Forecasts

The global copper market is projected to trade at approximately $4.63 per pound by the end of the current quarter, according to various macroeconomic models and analyst expectations [4]. Furthermore, over the coming year, prices could rise to $4.94 per pound. However, these forecasts are subject to change based on developments in international trade policies and their influence on industrial demand [2][4]. Given copper’s pivotal role in global industries, these shifts could impact manufacturing costs globally, affecting industries across electronics, construction, and more [GPT].

Conclusion and Outlook

As the situation evolves, the copper market remains a key indicator of economic health, with prices reflecting broader global economic trends and geopolitical dynamics. Stakeholders in manufacturing and trade must navigate these currents carefully, as upcoming tariff announcements and international policy adjustments could further alter the landscape. Monitoring these developments will be crucial for investors and policymakers alike to adapt their strategies effectively [1][5][6].

Sources

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