Copper shifted higher overnight (AEDT) as the certainty around US tariffs prompted concerns over tightening supply.
ANZ Head of Australian Economics Adam Boyton says the industrial metals sector closed just short of US$10,000 ($15,721) a tonne, a level not seen since October 2024.
“A Bloomberg report suggested that the US is about to be flooded with between 100-150,000 tonnes of refined copper in the coming weeks,” he says.
“Traders are redirecting the metal from Asia to take advantage of the price premium and skirt any potential tariffs on the metal in coming months. This could tighten markets such as China just as signs emerge of stronger demand.”
Meanwhile, the US Federal Reserve is holding steady on interest rates, which lifted US markets overnight.
The ASX followed US markets higher post the opening bell today (20 March), to advance 61.4 points, or 0.78%, to 7,889.7 points as of 10.30am AEDT.
The index is up 1.81% over the past five days but down 3.3% since the start of the year.
Eight of the 11 sectors were higher in early trade. Industrials rose 0.22%, energy shifted up 0.17% and utilities advanced 0.13%. Materials, however, moved marginally lower.
Iron ore producer Fortescue (ASX:FMG) slipped 2.31% to $16.11 as the price of the steelmaking commodity lost ground due to continued weakness in China’s steel industry.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
