FX.co ★ Copper Falls on US Destocking Concerns

Copper futures dropped to approximately $4.76 per pound on Friday, continuing the decline from the previous session as investor anxiety grew regarding a possible destocking phase in the United States. Concerns increased about the impact of President Donald Trump’s anticipated tariffs, with fears that confirmation of the specifics could lead US companies to significantly cut back on imports after having accelerated purchases earlier in the year. This scenario has contributed to a drastic reduction in global copper inventories, which have plummeted nearly 80% since the beginning of the year. The bearish outlook was compounded by recent reports of the discovery of one of the largest copper, gold, and silver deposits in Argentina in the past 30 years, estimated to contain 13.2 million tons of copper and over 80 million ounces of gold and silver combined. Geopolitical tensions also added to the negative sentiment, with the escalating conflict between Israel and Iran and indications that the US might be planning a potential strike on Iran.