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Informist, Thursday, Jul. 10, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper rose on the Multi Commodity Exchange of India and the London Metal Exchange Thursday due to a possible supply tightening in markets outside the US after President Donald Trump announced 50% tariffs on imports of the red metal. Traders will keep moving copper to the US till the tariffs are implemented, reducing inventories elsewhere.

Trump announced a 50% tariff on copper imports, effective Aug. 1, as part of his efforts to promote domestic mining and metal processing. The decision was made following a national security assessment, said Trump, who shared the news on social media. "Copper is necessary for semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems, and even, hypersonic weapons, of which we are building many," Trump said in a post on his social media platform Truth Social.

"...there is growing concern that the levy will further disrupt global trade flows. The ultimate impact will likely be decided by how the tariff is implemented. While refined metal is the likely target, any levy of semi-processed materials such as copper wires could cause even further disruption," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

Since February, when Trump had ordered the Commerce Department to investigate the threat copper imports pose to national security, traders and companies globally have been moving the red metal to the US to avoid tariffs. "...the flow of copper into the US is only likely to get stronger over coming weeks. This could tighten the copper market in other regions, such as Europe and China, which would put upward pressure on prices," Hynes added.

ALUMINIUM prices rose on prospects of renewed demand. "The lightweight metal can be substituted for copper in many applications. Thus, a surge in copper prices could make aluminium a more economically viable alternative in sectors such as electrical or construction," Hynes said.

At 1602 IST, on the MCX, the July futures contract of:
-–Aluminium was at INR 250.05 a kg, up 0.2%
–-Copper was at INR 887.25 a kg, up 0.4%
–-Lead was at INR 181.15 a kg, up 0.2%
–-Zinc was at INR 260.65 a kg, up 1.1%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 244.80-INR 253.50
--Copper contract seen at INR 857.60-INR 914.60
--Lead contract seen at INR 180.00-INR 181.50
--Zinc contract seen at INR 252.90-INR 261.90

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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