Copper Futures Surge Following China’s Stimulus Initiatives
Copper futures rose to nearly $4.90 per pound driven by China’s stimulus measures to enhance demand and expectations of impending US tariffs on copper imports, which could disrupt domestic supply.
On Monday, copper futures approached $4.90 per pound, nearing a ten-month peak due to stimulating measures announced by China, the largest consumer of copper globally. This new policy aims to enhance household income, increase spending, and foster population growth, which in turn raises expectations for stronger industrial demand for copper.
Additionally, anticipated tariffs on copper imports by US President Donald Trump are further bolstering prices, as such measures could limit the capacity of domestic smelters. Presently, the United States imports nearly 50% of its copper supply and depends on only two principal smelters for local production.
Reports indicate that these tariffs could be enforced later this year. The recent increase in base metal tariffs on Canada by the White House has intensified fears that copper tariffs may be introduced sooner than previously anticipated.
In summary, copper prices are buoyed by China’s recent stimulus measures aimed at bolstering demand and by potential tariffs on US copper imports that could challenge domestic smelting capacity. These factors combined lead to rising expectations for industrial demand and market volatility.
Original Source: www.tradingview.com
Post Comment