Countdown to tariff suspension period + intensifying disagreements within the US Fed, copper prices extend gains overnight

Published: Jul 2, 2025 08:42

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Macro side, the current 90-day tariff suspension period is set to expire on July 9th, with Trump indicating no intention to extend the deadline. It is reported that India is seeking to reach a temporary trade agreement with the US this week, while Japan may face tariffs of 30% or 35%. Market concerns over future policy directions have intensified, putting pressure on the US dollar and providing a boost to copper prices. Meanwhile, disagreements within the US Fed over policy stances have widened. Although Chairman Powell reiterated independence and adhered to a "wait-and-see" strategy during the Senate hearing on June 24th, doubts remain in the market about his ability to maintain a neutral stance amid political pressure, which may further weigh on the US dollar. Fundamentals side, demand side, copper prices are hovering near the 80,000 yuan/mt threshold, significantly dampening downstream procurement sentiment. Although spot premiums opened high in the morning session, there was almost no trading in the market. Subsequent stable trading volumes largely depend on transactions by traders, with limited actual procurement volumes from downstream players. Price side, in summary, with the US dollar under pressure, it is expected that copper prices will continue to fluctuate at highs today.

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