U.S.-traded copper futures rose 2.2% to US$5.21 per pound amid persistent speculative buying driven by tariff concerns. Latin American currencies also broadly strengthened.
By Benjamín Pescio
The dollar fell sharply below $920 on Tuesday, as copper prices reached record levels in the United States, fueled by aggressive stockpiling of the metal in anticipation of potential tariffs still being evaluated by Washington.
In the Chilean foreign exchange market, the currency declined by $10.25, reaching $918.02 before noon, after unsuccessfully attempting to break below the $920 mark the previous day.
Generic COMEX copper futures climbed 2.2% to US$5.21 per pound, marking the highest intraday levels recorded since Bloomberg’s data series began in 1988. This widened the gap with copper futures on the London Metal Exchange (LME), which rose only 0.9% to US$4.56 per pound.
Stockpiling Copper
“The fundamental factors remain the same: stockpiling in the U.S. ahead of potential tariffs. This isn’t genuine end-user demand but inventory-driven buying due to tariff speculation. Additionally, the general weakening of the global dollar positively impacts asset valuations,” Juan Cristóbal Ciudad, Senior Market and Industry Analyst at Plusmining, told DF.
Ciudad further noted: “It’s also possible that confidential information or rumors could be driving COMEX copper prices more aggressively than those on the LME. For instance, the market may be assigning a higher probability to tariff hikes. The White House study is expected to conclude by November.”
A global dollar indicator showed slight weakness, along with lower U.S. Treasury bond yields, while Latin American currencies were among the strongest performers of the day.
All these factors coincide with improving growth expectations for China, which recently announced several measures to boost domestic demand.
Source: Diario Financiero