US tariff concern, AI data centre demand to aid copper prices - Commerzbank
This story was originally published at 17:21 IST on 19 June 2026
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NEW DELHI – Though copper prices have lost the recovery momentum amid reduced hopes of easing US monetary policy, the industrial metal continues to find support from expectations of potential US tariffs on refined copper and strong demand from artificial intelligence data centres, Commerzbank said in a report.
"In anticipation of potential tariffs starting in 2027, copper inventories on the COMEX have more than tripled over the past 12 months," the report said. US refined copper imports nearly doubled on year in the first quarter. "Should the US government decide on new measures in this regard in the next weeks and implement those as of January 1 next year, US demand for copper could rise further," the bank said.
Apparently, US Federal Reserve Chairman Kevin Warsh's comments have dampened the market sentiment as interest rate cuts do not seem to be on the agenda anytime soon amid easing oil prices, the report said. "Nevertheless, it should not be forgotten that, with the reopening of the Strait of Hormuz, copper is not only receiving a boost from improved demand prospects but is also receiving price support on the supply side," the bank said.
China's copper smelters have benefited from the sharp rise in prices of sulfuric acid--a byproduct of refined copper production--helping offset pressure from a copper concentrate shortage and negative processing fees. "Even though prices have retreated somewhat...production has remained attractive," it added.
At 1640 IST, the three-month contract of copper on the LME was down 0.5% at $13,629.43 per tonne. On the Multi Commodity Exchange, the June contract was down 1% at INR 1,308.75 a kg. End
US$1 = INR 94.32
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Afra Abubacker
Edited by Akul Nishant Akhoury
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