Copper Holds Firm Amid Supply Squeeze and Trade Policy Uncertainty
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Copper prices remained stable this week as persistent refining bottlenecks and looming tariff concerns kept traders on edge. The industrial metal, a key barometer for global economic health, has faced volatile swings in recent months due to tightening supply chains and geopolitical tensions. According to industry analysts, refining capacity struggles—particularly in China, the world’s top copper consumer—have exacerbated supply shortages. Smelters are grappling with declining ore grades and operational disruptions, further straining the market. Meanwhile, fears of potential tariffs on Chinese exports by the US and EU have added another layer of uncertainty, leaving buyers cautious. Additional reporting from Reuters highlights that copper inventories in London Metal Exchange (LME) warehouses have dipped to multi-month lows, signaling tightening availability. Experts suggest that unless refining output improves or trade policies stabilize, prices could see renewed upward pressure in the coming quarters. The metal’s critical role in renewable energy infrastructure and electric vehicles continues to underpin long-term demand, but short-term headwinds persist. Market participants are closely monitoring China’s economic recovery and policy moves from major central banks for further direction.
