- Copper price spike is attributed to President Donald Trump's latest tariff moves, but there's other significant propulsion elsewhere.
Copper price continued with its uptrend on Wednesday, inching up by 0.4% to trade at $5.540/lb, just below the all-time highs of $5.879/lb set on Tuesday. The metal’s upside is propelled by US President Donald Trump’s announcement that he would impose a 50% tariff. In addition, US Trade Secretary Howard Lutnick revealed in an interview that the tariffs would come into effect either towards the end of July or in early August.
This move, framed as a national security measure under Section 232, sent U.S. copper futures soaring as market participants scrambled to lock in supply before the policy kicks in. Meanwhile, copper’s broader supply picture remains constrained. Many of the world’s major mines are seeing lower ore grades, while new mining projects are scarce due to high capital costs and environmental opposition. Furthermore, a recent collapse of a tailings dam in Zambia also knocked out a significant chunk of African production, exacerbating the tight supply outlook.
Copper sits at a tense crossroads. On on hand, its short-term momentum is fueled by tariff-induced buying and stockpiling, and on the other hand, long-term bullish forces persist in the form of constrained supply and booming green demand. China, which consumes more than half the world’s copper, continues to support prices through green infrastructure spending and industrial recovery efforts. Nonetheless, traders should brace for volatility as policymakers and markets adjust to these rapidly evolving dynamics.
Copper Price Prediction
The momentum on copper price calls for further upside above $5.48. The upside momentum will likely meet initial resistance at $5.60. However, an extended control by the buyers will break above that level and likely test $5.80.
On the other hand, going below $5.48 will shift the momentum to the downside. With that, primary support is likely to be at $5.40. Action below that level will invalidate the upside narrative, and the resulting momentum could clear the path to test $5.28.
