Donald Trump’s vote to impose 50 percent tariffs on copper imports continued to reverberate throughout the market for the most important industrial metal in the world shaken on Wednesday.
Although US copper prices. UU. They shot higher after the president of the United States delivered his threat on Tuesday, the global price in the London Metal Exchange sank on Wednesday when the merchants bet that the tariffs would finally affect the demand of the metal.
“Eventually, the growth of physical demand for copper worldwide will be under pressure, since the downstream players seek to differ consumption,” said basic products analyst Tom Price in Panmure Liberum.
The United States imports around 60 percent of its copper, with the rest fulfilled by national mines or recycled scrap.
The copper stocks in the New York Comex exchange had reached the top records above this month about the expectations that Trump would eventually point to imports. Metal is widely used in electronics, construction and industrial equipment.
Metal prices at CERX fell 2.1 percent on Wednesday morning to $ 5.53 per pound, after increasing around 13 percent to a record in the previous session.
“The reaction in the copper market to Trump’s announcement was fast and furious,” said Marex consultant, a basic products corridor, adding that a 50 percent tariff would be a “massive success” for US consumers.
Howard Lutnick, secretary of Commerce, said in a CNBC interview on Tuesday that he expected the duties to be implemented as soon as the end of this month.
The merchants said that this year’s hurry to take Copper to the US.
