US President Donald Trump’s promise of more tariffs, this time on the European Union “very soon”, put a tailwind behind metals, including copper.
ANZ says copper futures on the Comex in New York rose as much as 4.9% before paring gains late in the session overnight.
“Copper prices surged higher as Trump ordered the US commerce department to examine possible import tariffs on the metal,” Senior Economist
“The move was the latest in a string of steps aimed at imposing sector-specific levies to protect US consumers.
“He said the American copper industry has been decimated by global actors attacking domestic production.”
Trump has given the Commerce Department 270 days to investigate and report back.
Timbrell says the move is likely to see more copper delivered into the US in the short term.
“The spread between New York and London prices has been widening ever since Trump won the election, hitting a high of US$1,000/t in mid-February,” she says.
“It has subsequently settled down to around US$500/t. With the likelihood of a tariff significantly higher, the spread is likely to widen further in coming weeks.”
Supply disruptions in Chile are also supporting copper prices.
Meanwhile, the S&P/ASX 200 added 30 points, or 0.36%, early in the session to sit at 8,270.7 points. The index has lost 1.76% for the last five days, and is 4% below its 52-week high.
Six of the 11 sectors gained ground. Industrials climbed 0.18%, materials edged up 0.06% and energy rose 0.03%. Utilities, however, slid 0.29%.
Coal miner Stanmore Resources (ASX:SMR) shifted down 4.33% to $2.43 not long after the opening bell.
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 & iStock
