Copper prices swung following the US midterm elections, which resulted in a Democratic sweep of Congress and a weaker dollar. Benchmark three-month futures in London pared losses to trade near $14,000 a ton after earlier touching their lowest level since August. The election outcome, seen as pushback against President Donald Trump, contributed to the dollar's decline, which typically aids commodity prices.
Copper has experienced significant volatility throughout the year, having touched a record high in September before easing recently due to concerns over artificial intelligence spending and global growth fears. Following the vote, attention turned to the possibility of the Trump administration implementing tariffs on refined copper imports, a move that has previously drawn substantial metal flows into the US market. Copper declined as much as 1.5% to $13,821.50 a ton on the London Metal Exchange before stabilizing around $14,005 a ton in Shanghai.
Other major metals traded flat to higher. Traders remain focused on upcoming policy signals regarding potential trade restrictions and their impact on metal supply flows.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing