Global copper prices rise to a three-month high

The three-month futures of the London Metal Exchange (LME), an international copper benchmark, hit a three-month high. In China, which accounts for 60% of global copper ingot consumption, vigilance against the tariff policy of the Trump administration has eased, and buying bets on copper consumption growth have taken advantage.

LME’s three-month copper futures rose to $9,684.5/ton on February 14, hitting a new high since November 7, 2024. The US retail sales in January announced on the 14th were lower than market expectations, and the closing price of LME’s three-month futures fell, but it was still close to the $10,000 mark.

Trump imposed a 10% tariff on goods imported from China. However, Trump proposed an additional 60% tariff on China during the presidential election. “Now it feels not as tough as expected, and economic concerns have slightly subsided” (Yuta Kikuchi, director of Mizuho Bank).

In addition to being used for power infrastructure and home appliances, copper is also used for building wires. Tomohisa Akuta, chief researcher at Mitsubishi UFJ Research & Consulting, said, “Although there is a lot of uncertainty in China’s real estate market, stimulus measures have been introduced and consumption growth in these areas is also expected.” Market concerns about Trump’s tariff policy remain prominent, and Kikuchi said, “I don’t think (copper prices) will continue to rise.”