LONDON: Copper prices jumped on Monday as the dollar fell after a report said US President-elect Donald Trump’s aides were considering tariffs that would be applied only to critical imports, easing worries about wide-ranging levies that could trigger trade wars.
The Washington Post reported that Trump’s aides were exploring plans that would apply tariffs to every country, but only on sectors seen as critical to national or economic security. Trump later denied the report.
Benchmark copper on the London Metal Exchange (LME) was up 1.7% at $9,031 a metric ton at 1530 GMT. Nervousness about the outlook has kept copper in a narrow range around $9,000 since the US election in November.
“The price is being driven by macro factors,” said Robert Edwards, analyst at consultancy group CRU, adding that the dollar was one of those factors. “Until anything firm or concrete happens (on US import tariffs), it’s difficult to make a judgment on how the market will progress.”
A weaker US currency makes dollar-priced metals cheaper for holders of other currencies, which would be positive for demand.
However, gains are expected to be capped by ongoing concerns about demand in top consumer China, where growth and consumption of industrial metals is weak.
The copper market is also focused on tight supplies of concentrate owing to operational issues and disruptions.
“Refined copper output outpaced mine supply in 2023 and 2024 as smelters fed more scrap into the mix and opted to keep running even as margins deteriorated,” Morgan Stanley analysts said in a note.
“This may get more challenging to deliver in 2025, as latent scrap in the system is used up, and copper prices are also down significantly from 2024’s all-time high.”
Global mined copper supplies are estimated at about 24 million tons this year. Copper hit a record high of $11,104.50 last year.
In other metals, aluminium rose 0.4% to $2,503 a ton, zinc added 0.8% to $2,912, lead was up 1.2% at $1,946, and tin advanced 0.7% to $29,325, while nickel gained 1.3% to $15,305.
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