LME copper falls as US-Iran tensions and tariff policy reviews weigh on demand outlook amid profit-taking.
Copper prices retreated below $14,000 per tonne on Wednesday, reversing a recent rally as macroeconomic concerns and geopolitical risks dampened sentiment. The pullback followed a 3% gain over the prior two sessions, driven by profit-taking and uncertainty over US tariff policies on refined copper imports.
Weaker global growth expectations, higher energy costs, and inflation fears contributed to the decline, despite ongoing supply risks. The US adjusted its metals tariff framework, maintaining elevated duties on certain copper products while expanding coverage to include semi-fabricated goods like electrical conductors.
The changes also lowered the threshold for US-origin metal qualification from 95% to 85%, easing rules for importers seeking preferential treatment. Structural demand linked to electrification and grid investment remains supportive long-term.