World Trade Disorders pay the price of copper above 10 thousand dollars per ton

Copper prices recorded a strong leap, crossing the $ 10,000 barrier per ton, after weeks of global trade tensions resulting from US President Donald Trump’s attempts to impose customs duties on this vital industrial mineral, according to the American Bloomberg Network.

Trump ignites copper prices

Last month, Trump issued a directive to the US Department of Commerce to start an investigation on copper imports, in preparation for the possibility of customs duties. Since then, copper prices in the United States have risen sharply, as merchants rushed to import it before the implementation of any customs procedures, which led to the reducing supply in global markets.
On the London Metal Stock Exchange, the price of copper increased by 0.6% to $ 10,046.50 per ton, recording its highest level since last October. Meanwhile, the prices on the New York Stock Exchange are close to their standard levels.

Copper Market .. World Recons

Wei Lai, Vice President of Trading at Zijin Maining Investment Company in Shanghai, commented:
“We are now witnessing a new round of pricing paid for the possibility of imposing American customs duties on copper.”
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He added: “The flow of supplies towards the United States reduces the supply in other markets, which enhances the purchase morale and drives prices to rise.”

The effect of customs duties on the markets

The effects of Trump’s decisions are not limited to copper only, but also extend to the overall global trade, as the United States imposed customs duties by 25% on steel and aluminum imports, in addition to imposing definitions on Canada, Mexico and China, with promises to expand the domains from next month.

Expectations to impose copper fees

Expectations indicate that the ongoing investigation of copper imports will not issue its recommendations until later this year. However, Goldman Sachs and City Group expects the United States to impose 25% customs duties on copper imports by the end of 2025.
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The breadth of the price gap between the markets

The price of copper on the American Comxum Exchange has witnessed 27% since the beginning of the year, compared to a 14% increase on the London Metal Stock Exchange.
This large difference prompted merchants to increase the transfer of supplies to the United States, as it is estimated that more than 100,000 tons of copper are on its way to the American market.
According to well -informed sources, the major basic commodity companies, including Travigorra and Jalinkur, are among the parties that transfer the metal from Asia to America.

The shares of copper companies

With copper prices returning to the level of 5 numbers, the shares of mining companies recorded a remarkable increase, as the MMG shares jumped by 8.2%, and Jiangxi Copper shares increased by 4.4%, and the CMOC group shares increased by more than 4%.

The role of the dollar in high prices

Although commercial tensions played a major role in the high price of copper, the weakness of the US dollar also strengthened the gains of the metal. Since Trump returned to the White House, the dollar has witnessed a remarkable decrease, which supported the demand for copper and other minerals.

Other minerals in the fluctuations

In a related context, aluminum in the United States recorded an increase to a record level, with 25% comprehensive customs duties imposing on its imports.
The price of copper on the London Metal Stock Exchange reached 9993 dollars per ton, while the rest of the basic minerals witnessed varying moves, aluminum and zinc rose slightly, while the nickel declined by 1.5%, and the London Stock Exchange index achieved basic minerals, which includes 6 main minerals, its highest level in 5 months.