Copper prices experienced an uptick on Friday, driven by ongoing worries about inflation and a rollback from a brief US-China trade ceasefire, reflecting concerns over slowing global growth.
At COMEX, copper prices climbed by 1.3% in July, reaching $4.68 per pound ($10,296 per tonne). The London Metal Exchange saw prices rise close to their highest levels since early April, starting the week before retracting slightly to $9,544 per tonne during morning trading, a drop of 0.3%.
Recent tariff reductions announced by Washington and Beijing have alleviated some pressures on the commodities market, which had been impacted by trade frictions that overshadowed the global economic outlook.
US Treasury Secretary Scott Bescent remarked that the trade agreement, arising from former President Donald Trump’s initial tariff conflict with China, serves as a “very good framework” for future discussions. He reiterated that the US does not intend to pursue a broad economic separation from China.
Investors are now looking forward to the US inflation report for April, set to be released on Tuesday, which may shed light on the influence of tariffs on consumer prices.
China’s Copper Ore Imports Hit Record High
China’s imports of copper concentrates surged to almost 3 million tonnes in April, marking a record that alleviates domestic price pressures and offers some relief to smelters primarily reliant on ore supply.
Meanwhile, spot treatment fees remain significantly negative across global smelters, as margins have dwindled due to a mismatch between increasing processing capabilities and a shortage of global ore. Most of the smelting operations take place in China, and despite commitments to reduce production and enhance profitability, advanced copper production continues to hit new records.
