NewsFlash / Copper / Copper Prices Receive Short-Term Boost Amid Weak US Economic Data and Trade Policy Uncertainty
Copper Prices Receive Short-Term Boost Amid Weak US Economic Data and Trade Policy Uncertainty
iconJun 3, 2025 08:54
Source:SMM
[Weak US economic data + intensifying trade policy impact, copper prices show significant short-term support]: Macro side, data indicates that the US manufacturing sector contracted for the third consecutive month in May, putting pressure on the US dollar index, which hit a nearly six-week low, thus supporting copper prices. Additionally, Trump stated late last Friday that he plans to raise tariffs on imported steel and aluminum from 25% to 50% starting Wednesday, and hopes that countries will present their best trade negotiation proposals by Wednesday. Currently, US officials are attempting to accelerate negotiations with multiple trading partners before the end of the self-imposed five-week suspension period. Under the pressure of tariff threats, the US dollar is under pressure, supporting copper prices. Fundamentals side, supply side, last Friday was the last trading day of May, with most enterprises halting trade and fewer shippers, leading to a temporary tightening of spot supply in the market and driving up spot quotes. Demand side, there is still some downstream demand for just-in-time procurement, but buyers are forced to accept high premiums, resulting in relatively passive overall procurement behavior, with no significant improvement in purchasing sentiment. Price side, copper prices are expected to remain supported today.

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