Copper prices fell on Monday, pressured by concerns that U.S. tariffs and slowing global growth could dampen demand for industrial metals. The decline followed a brief rally after President Donald Trump temporarily exempted automakers from tariffs on Canadian and Mexican imports.
Market sentiment remains fragile as investors weigh the dual threats of trade tensions and weakening economic activity. “Tariffs effectively freeze business activity, and slowing U.S. growth could outweigh supply tightness,” said Edward Meir, a consultant at Marex. China, which consumes half the world’s copper, is also showing mixed signals: while bonded warehouse stocks surged 200% to 45,000 tons this year, the Yangshan import premium rose 40% to $50 per ton since March, hinting at resilient demand.
LME inventories have declined as metal shifts to COMEX ahead of potential U.S. tariffs, with canceled warrants indicating further drawdowns.