Nirmal Bang sees copper prices rising on easing tariff worries, trade deals
This story was originally published at 19:15 IST on 5 June 2025
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NEW DELHI – Copper prices are likely to rise further in the coming months, buoyed by easing tariff concerns and renewed Chinese demand, Nirmal Bang said in a report. The possibility of refined copper production cuts is also supporting prices, it said.
"We expect a 4% ($10,000-$10,200) upside in copper prices over the next two-three months, from the current price of $9,750 per tonne. This expectation reflects robust market trends and emerging demand that suggest favourable conditions for growth in the copper sector," the broking firm said.
The US-China agreement to temporarily ease tariffs on imported goods has lifted sentiment across industrial metals. Tariffs had previously dampened prices by weighing on global growth and fuelling inflationary concerns. However, copper prices have gained around 9% so far in 2025 amid strong Chinese demand and a spike in US-bound shipments that tightened supply elsewhere.
China's demand for copper remains firm, with copper concentrate imports hitting a record 2.92 million tonnes in April. Copper concentrate imports year-to-date are up 7.3% at 10 million tonnes, signalling continued momentum from grid expansion and infrastructure projects, the report said.
On the supply side, refined copper production may come under pressure, while dwindling inventory levels suggest tightening conditions. Copper stocks at the London Metal Exchange have dropped 37% since February to 75,000 tonnes in May, reflecting market apprehensions over earlier US tariff threats. Similarly, stocks at the Shanghai Futures Exchange fell to 105,000 tonnes in May from 268,337 tonnes in February, underscoring growing demand from sectors such as power grids, electric vehicles, and exports. End
US$1 = INR 85.79
Reported by Afra Abubacker
Edited by Deepshikha Bhardwaj
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