Copper futures remained below $6.3 per pound on Monday after losing nearly 6% over the previous three trading sessions. The decline came as stronger-than-expected US employment data reinforced expectations that the Federal Reserve could raise interest rates later this year.
Market sentiment was also affected by escalating tensions in the Middle East. Iran’s missile strikes toward Israel pushed energy prices higher, increasing concerns that inflationary pressures may remain elevated for longer than expected.
Persistently high inflation and tighter monetary policy could slow economic growth and weigh on industrial activity, creating headwinds for copper demand and other base metals.
Meanwhile, anticipation surrounding the Trump administration’s June deadline for deciding on potential new import tariffs encouraged additional copper shipments into the United States. This trend has tightened available supply in other regions and contributed to market volatility.
Despite these challenges, copper demand showed signs of resilience. Data from the Shanghai Futures Exchange revealed that copper inventories fell to their lowest level of the year last week, indicating steady consumption and continued buying interest in China, the world’s largest copper-consuming country.
