Citigroup Says Copper Can Hit $10,000 Before Tariffs Bite
The worldwide market will stay tight until the timing for US import taxes is clear, according to Citigroup Inc., which predicted that copper would reach $10,000 per ton in the next three months.
Following President Donald Trump’s decision to investigate copper imports, which sparked a shipping rush to the US before any import taxes were imposed, the metal has increased in value in recent weeks. Since October, copper has hit its highest level on the London Metal Exchange.
In an email, Max Layton and other Citigroup analysts stated, “We believe ex-US physical market tightening is likely to persist through to May/June, temporarily offsetting price headwinds from broader US tariff announcements.”
Although concerns about the US economy are growing as Trump changes trade policy, industrial metals have held up reasonably well. Growing raw material shortages as demand rises faster than miners can supply them have also supported copper.
By 11:14 a.m. In Shanghai, copper was up 0.3% at $9,797 a ton, bringing its gain to about 12% this year. As smelters in the world’s most significant producer experience increasing losses due to intense competition for copper concentrate, Chinese authorities have granted additional export licenses. Processing expenses have exacerbated a decline below zero.
The European Union and Canada retaliated against Trump after his revised Section 232 tariffs on steel and aluminum went into effect on Wednesday. Trump has stated his intention to impose copper tariffs, but his Commerce Department must first carry out an inquiry and submit its findings.
Citi’s opinion differs from its earlier prediction that copper prices would drop to $8,500 per ton in the second quarter. As the introduction of the Section 232 copper tariff approaches, the bank stated that it still anticipates a reversal “once tariff-induced US copper import demand collapses.”
