2025.09.0208:49:00UTC+00Copper Holds Record-Setting Plunge

In September, copper futures remained below $4.50 per pound, experiencing a period of stability following a sharp decline in late July. This drop occurred after the U.S. government decided to exclude refined copper from its list of tariffed goods. Initially, the U.S. had planned to impose comprehensive tariffs on copper products but ultimately chose to target only semi-finished copper items such as wires and pipes. This change meant that imports of essential materials like ore, cathodes, and concentrates were exempted from taxation, as these are key imports for the U.S. This policy shift prompted an unprecedented 20% selloff in copper futures, driven by the unwinding of warrants and a surge in shipments to the U.S. meant to circumvent potential tariffs. Meanwhile, Zijin, a leading Chinese copper company, highlighted strong copper demand in China, driven by datacenter growth and the expansion of electrification technologies. Despite this demand, refining capacity remains excessive, as companies compete for a limited supply of ore.