Copper’s Roller‑Coaster: From 8‑Month Highs to a Sudden Drop
After a solid streak of six days of gains, copper traded at a flat‑breathed decline on Tuesday, wiping out the festive momentum that had surged earlier this week.
Why the Dr. Copper Trend Was So High‑Spirited
- Positive U.S. economic data – the Manufacturing PMI finally signs out of a two‑year slump, hinting that factories are waking up.
- New Non‑Filing Payrolls (NFP) show a drop in the unemployment rate, giving investors a confidence boost.
- The U.S. government kept copper out of its new steel & aluminum tariffs, preventing another shot in the dust.
All of this nudged copper to an 8‑month peak, and for the moment, the market celebrated like it had won the lottery.
Today’s Market Whispers
But like a good thriller, the plot twist arrived: copper prices fell almost 3% in a single session. The correction? Think of it as a “profit‑taking holiday” after a RALLY, with traders tightening their belts as global trade tensions loom large.
Looking Ahead: The Glue That’s Holding Copper Together
- Trade policies – especially the U.S.–China dynamics, the world’s biggest copper consumer – remain the main “hand‑shake” that can either keep copper steady or send it spiraling.
- Even modest tariff hikes could ripple through China’s growth, cutting back on copper demand worldwide.
- Chile’s peso has already felt the “copper boost”: a multi‑month high has pushed the currency more than 5% stronger against the U.S. dollar.
In short, copper’s recent dip is more of a market wobble than a permanent shift. The U.S. industrial revival and China’s stimulus plans still provide a safety net, but the real key player is the backstage drama of global trade.
