The long -awaited clarification about copper tariffs in the US has arrived. Once again, it turned out not to be as bad as it was feared, says CommerzBank raw material analyst, Barbara Lambrecht.
The price of copper in Comex collapses
“Only the import of semi -finished copper products such as pipes, plates and rods will be subject to a 50%tariff from August 1, but not the import of refined copper as cathodes and anodes. This was a big surprise: the price of copper in Comex collapsed 20%, and the premium in New York copper in the LME barely reacted. “
“There may be some medium -term support, at best: first of all, Americans will continue to buy ‘normally’ in the world market. However, anticipating possible tariff since it would not have been possible to sell it in the USA in case of high tariffs. “
“And a third factor to be mentioned: more and more semi -finished copper products produced in the country will be sold within the country due to the tariff. The objective is to boost US production in the copper founditions. However, tariffs could also slow down the production of copper in the US. If national production were significantly more expensive than that of the usual suppliers, which would significantly reduce demand.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
