Copper Falls Ahead of US Market Report

Copper futures fell below $6.1 per pound on Wednesday, reversing the previous session’s gains as investors awaited a US Commerce Department report on the copper market that could pave the way for import tariffs on refined copper. The metal also came under pressure from strong US economic data, which reinforced expectations of tighter Federal Reserve policy and weighed on the demand outlook for industrial metals. Markets are now pricing in at least one Fed rate hike this year, with the first potentially coming as early as September. Meanwhile, Goldman Sachs said the conflict involving Iran could ultimately support metals demand, citing stronger electric vehicle adoption, increased investment in renewable energy, higher defense spending and intensifying competition in artificial intelligence as key drivers of long-term copper consumption.

Copper futures steadied above $6.1 per pound on Tuesday but remained on track to fall more than 4% for the month, pressured by expectations of tighter US Federal Reserve policy that has dampened the demand outlook for industrial metals. Markets continue to price in three Fed interest rate hikes this year, with the first potentially arriving in September. Investors are now looking ahead to the US monthly jobs report later this week for fresh insight into labor market conditions and the central bank's policy trajectory. Meanwhile, Goldman Sachs said the conflict involving Iran could ultimately boost metals demand, pointing to stronger adoption of electric vehicles, increased investment in renewable energy, higher defense spending, and intensifying competition in artificial intelligence as key factors supporting long-term copper consumption.

Copper futures fell toward $6.1 per pound on Monday, snapping a two-day rebound as expectations of tighter US Federal Reserve policy continued to weigh on the outlook for industrial metals demand. Fed Chair Kevin Warsh reiterated the central bank's commitment to bringing inflation under control, reinforcing the hawkish tone of his debut earlier this month that prompted markets to scale back expectations for US rate cuts this year. Investors are now awaiting the latest US monthly jobs report later this week for fresh clues on labor market strength and the Fed's policy path. Meanwhile, Goldman Sachs said the Iran conflict could ultimately support metals demand, citing increased reliance on electric vehicles, further investment in renewable energy, higher defense spending, and intensifying competition in the artificial intelligence race as key drivers of copper consumption.