MARKET COMMENTARY
3M LME copper traded between $8914.5 and $9684.5 in February. 3M LME copper fell to $8914.5 in China on Thursday, February 6, 2025, as Trump’s 10% tariff on imports from major metals consumer China increased trade war concerns and created uncertainty in the markets.Copper prices rose to $9684.5, the highest level since November 8, 2024, and closed February at a 3.28% premium to $9361, supported by a media report that Chinese authorities are exploring plans to help major real estate firm Vanke close its financing gap and the expectation that US President Donald Trump’s plans for bilateral global tariffs will not come into effect before April.
Copper prices fell to $8914.5 at the beginning of the first week of February as Trump’s 10% tariff on imports from China increased trade war concerns and created uncertainty in the markets.3M LME copper extended gains throughout the week, rising to $9507, and closing the week at $9440, up 4.15% on news of additional tariffs on the US by China amid the tariff dispute with the US and ongoing concerns about demand in the world’s second-largest economy, and focus on whether China will announce more stimulus measures to boost its economy.
3M LME Copper prices rose to $9684.5, the highest since November 8, in the second week of February, supported by a media report that Chinese authorities are exploring plans to help major real estate company Vanke close its financing gap and the expectation that US President Donald Trump’s plans for bilateral global tariffs will not come into effect until April. Copper spreads moved sharply after news that the US will not implement tariffs on China until April, sending the market, which has been in contango for 19 months, into backwardation on February 14, 2025. LME copper ended the week up 0.26% at $9465. The cash settlement price on Friday, February 14, 2025, was announced as $9812. The cash settlement price for 3M LME copper on the same day was announced as $9665.
Copper prices fell to $9361 in the third week of February after Trump's threat to impose 25% tariffs on autos and semiconductor chips raised concerns about demand for the metal. But they rose to $9575, supported by Trump's signaling he was close to reaching a new trade deal with top consumer China, and ended the week up 0.53% at $9515.5.
3M LME copper traded between $9324 and $9555 in the last week of February. Copper prices fell to $9324 after Trump ordered an investigation into possible new tariffs on copper imports aimed at boosting U.S. copper production. The week ended down 1.62% at $9361, under pressure due to uncertainty over Trump’s tariff plans and a stronger dollar.
