Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
On Wednesday, July 16, 2025, copper rods in the storage facility at the AURUBIS AG metal plant in Hamburg, Germany.
Bloomberg | Bloomberg | Gets the image
The main release from 50% of President Donald Trump a copper fare He shocked traders and sent us market prices.
A The final order According to the Trump administration, the copper tariffs will increase the household branch of copper, spread to semi -finished products such as pipes, rods, letters and wires. It also affects copper-intensive items such as cables and electrical components. But the main thing is that it does not include copper cathode of raw material, copper ores, concentrates or pruning, as it was expected.
However, analysts note that this may not be enough to avoid prices for a number of consumer goods containing metal, from dishes to conditioning blocks to plumbing parts that are pushed above as a result of tariffs.
Prices for copper CME.
Prices for copper US On the Chicago Trading Exchange (CME) was shot to record high level earlier this month, also hit by Award for all the time over the world benchmark London metal exchange (LME) after Initial July announcement about 50% tariff. While the importers have already sent exquisite copper floods at the level of records during the first half of the year, waiting for new duties, the scale in the markets of 50% rate and exerted strong pressure on prices in the US.
On Wednesday, the tariffs focused on only semi -finished products gives another large -scale shock. In the minutes after the News Copper news (Futures Futures Contracts on CME) decreased by 19% in the largest drop in intra -productions, Bank ing reports.
The gap between COMEX above the LME prices was about 30% since the initial announcement of July 8, which means constant uncertainty, that the total tariff rate ended in 50%.
However, traders considered possible release for countries such as a major exporter of Chile, or for delays until the tariffs, said CNBC Albert Mackenzi, a copper Benchmark Mineral Intelligence analyst.
The actual situation-it is almost 180-degree turn from what was expected, and what was appreciated in the CME, which was tariffs for exquisite copper, continued Mackenzi.
Mackenzi said the deviation had sent a premium CME in Europe of approximately $ 2637, to only $ 90 in Europe on Thursday morning, said Mackenzi – a drop that would look like a mistake, if not for a tariff context, he added.
Pressure in the US down US
While traders used the price arbitration, part of the cause of the huge copy shipment to the United States was that it would take decades to meet the demand to meet the country to increase the internal production of metal. Currently, the United States is importing about half of copper, and large exporters, including Chile, Canada, Peru and Mexico.
This week, Deutsche Bank analysts emphasized “a huge shock for the market”, noting that on Thursday, sharing arizon Freeport-McMoran – The copper company, which is most subjected to exquisite copper, which raises the US prices – closed 9% lower.
“In principle, it does not change the balance of copper supply (and possibly improves it due to less risk of destroying demand), but it is likely to be subjected to Comex under high pressure,” they wrote.
According to them, as a result of a large -scale increase in the US in the US, it is likely that the price pressure on LME on a less dramatic scale will continue. The canopy “could see high deliveries from the US to the world market,” they said, where the supplies became tough.
Duncan Vanbrad, CEO of Mining Giant Anglo -Americans .
“Thanks to the medium and long period of the base, copper is really supported by the fact that the demand for being very strong still in terms of the world is in the transition of energy to look like electrical batteries, so that new energy offers are similar, AI,” he said. The supply to this long -term forecast remains limited, it added amid difficulties to obtain permits and the product to the market.
Influence on consumer goods
One of the politicians shown on Wednesday is that the copper tariffs will not perform new Trump’s new duties on automotive imports, that is, only the last indicator will apply to the affected product.
However, Mackenzie Benchmark Mineral Intelligence noted that a lower market price in the United States does not mean that there is no consumer prices.
“If you are a refrigerator manufacturer, air conditioners, or even houses, you do not buy copper cats. You buy wiring and other semi-finished copper products that are tariffs. Thus, it is reasonable to think that the price increase will be reflected in some goods,” Makenzi said.
Rus Bukovsky, president of the MasterCam software manufacturing company, agreed.
“Although there are currently high copper reserves in the country, copper tariff increases by 50% will harm the manufacturers ultimately and will lead to higher production costs,” Bukovsky said CNBC.
“In order to stay afloat, the manufacturer may have to convey these costs to consumers, which is likely to attract prices for different goods.”
Michael Raid, a senior US economist in the RBC Capital Markets markets, said the impact on consumer prices would be “nuanced”.
“The largest sectors that use copper as an entrance include cars, plumbing devices and valve fittings, communications (that is, cable and internet providers) and various electrical components. For this purpose, the way these products make the urinary are, if you say that the car will be imported.
“Where we could expect it to affect consumer prices, the most will be in the housing/construction sector, where copper entrances play a big role for electrical wiring and plumbing.”
“But in the context of the total cost of the house, the impact is not as rigid as it may seem 50% – provided that the typical cost of plumbing and electrical components is $ 10,000, and then the aggressive full transfer for the final consumer will mean that the costs have grown to $ 15 thousand.
. Michael Bloom CNBC contributed to the story
