Copper metal recorded a market performance at the beginning of the year with a jump of as much as 27% amid Donald Trump’s tariff concerns and China’s stimulus measures last week.
The copper metal industry has become increasingly important with increasing demand for electrification, especially the surge in demand for EVs, artificial intelligence (AI) and the world’s shift to renewable energy.
On the other hand, copper has been experiencing supply constraints as mineral investment and refining capacity have decreased.
Due to the supply shortage, Trump’s tariff threat, China’s new stimulus measures and the weakness of the US dollar this year, it has collectively surged.
According to Capital.com market analyst Kyle Rodda, part of the copper flow is driven by China’s recovery stimulus and US tariffs. They see higher demand at higher prices that could partially suppress supply.
Last month, US President Donald Trump signed an executive order to investigate the country’s copper imports in an effort to address threats to national security and economic stability.
The White House is facing significant weaknesses in the copper supply chain with increasing reliance on foreign sources for mined copper.
The order is seen as a first step toward imposing import duties on copper, thus challenging China's dominance in the metal supply chain and driving up copper prices.
