Copper futures slipped below $6.6 per pound on Wednesday but remained close to the record high reached in the previous session, as investors continued to assess uncertainty surrounding potential US tariffs and tightening copper supply conditions worldwide.
Earlier this week, President Donald Trump signed a proclamation adjusting tariffs on selected metal imports. However, the broader policy regarding copper imports remains unresolved, leaving market participants cautious about future trade developments.
At the same time, concerns over copper supply intensified after Chile, the world’s largest copper-producing nation, reported its weakest April production level in more than two decades. The disappointing output data raised fears of tighter global availability and provided support for prices.
Demand fundamentals also remained favorable. Optimism surrounding the rapid expansion of artificial intelligence technologies and large-scale data center investments continues to strengthen expectations for higher copper consumption in the years ahead.
Additionally, the global transition toward cleaner energy systems is driving significant investment in power grid infrastructure and electrification projects. These trends are expected to support long-term demand and reinforce a positive outlook despite ongoing uncertainty in the market.
Source: Trading Economics
