Copper Surpasses $4.7/lbCopper prices have resumed an upward trajectory, surpassing the $4.7 per pound mark on Thursday, a level unseen since mid-2024. This growth stems from multiple factors, primarily rising uncertainty over whether the Trump administration could expand existing tariffs on steel and aluminum to other raw materials and metals, including copper. So far, copper has avoided new tariffs, but the risk of a changing scenario has impacted market expectations.
At the same time, “Dr. Copper” has previously benefited from a rebound in U.S. manufacturing activity, supported by the latest ISM Manufacturing PMI report, which posted its first month of expansion in 26 months. The indicator rose to 50.9 in January 2025, signaling a significant improvement in industrial demand, including new orders and production. Additionally, hopes for increased economic stimulus in China, the world's largest copper consumer, have also fueled a positive outlook for demand for this industrial metal.
However, market participants remain alert to potential repercussions from the U.S. administration, which has already announced the implementation of tariffs on steel and aluminum imports without country-specific exclusions. Moreover, any trade escalation resulting from these measures could create international tensions with key producers and disrupt supply chains, global economic growth, and, consequently, industrial metal demand.
Looking ahead, copper will remain closely tied to the evolution of U.S. trade policies and the strength of global manufacturing recovery. In the foreign exchange market, copper’s appreciation, as Chile’s primary commodity, has helped strengthen the Chilean peso, allowing it to reclaim the 950 pesos per dollar mark. Under these circumstances, copper’s potential is supported partly by demand and stimulus expectations but also faces the challenge of potential tariff pressures that could disrupt its dynamics in the coming months.
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