MARKET COMMENTARY
3M LME copper traded between $9,327 and $10,164.5 in March. 3M LME copper fell to $9,327 in early March after the US imposed tariffs on Canada, Mexico and China. Copper prices tested the highest level since June 7 at $10,164.5 on Wednesday, March 26, 2025, supported by investors waiting for more stimulus plans with the Chinese Congress held from 5-11/03, traders expecting the US to impose tariffs on copper and US importers aggressively stockpiling copper. 3M LME copper ended March with a 3.51% gain to $9,690.
Copper prices fell to $9,327 in the first week of March, under pressure from the US tariffs on Canada, Mexico and China. However, 3M LME copper rose to $9,739, its highest level since November 5, supported by the weakening dollar and investors waiting for more stimulus plans as the Chinese Congress began, and ended the week with a 2.57% gain to $9,602.
3M LME copper remained under pressure at the start of the week, falling to $9,455.5 as the U.S. assesses uncertainties surrounding tariff policies in the second week of March. However, the weak dollar, the reduction in existing stocks in the LME system and signs of improving demand in leading metals consumer China led to a rally to $9,850, the highest level since Oct. 9, and ended the week up 1.99% at $9,793.
Copper prices tested the highest level since October 3 at $10,046.5 in the third week of March as traders awaited possible tariffs on copper by the US. Potential tariffs have US importers aggressively stockpiling copper, making Comex copper $1,250 per tonne more expensive than LME copper. Major commodity traders such as Trafigura, Glencore and Gunvor have started to divert copper destined for Asia to the US. Copper prices also held up after a media report that China plans to expand its strategic industrial metal reserves, but gave back some of its gains as the dollar strengthened, finishing the week at $9,852, up 0.60%.
3M LME copper continued its upward trend throughout March and nearly held onto its gains in the last week of April. Copper prices rose sharply after Trump threatened to impose tariffs on industrial metal imports. Copper prices tested the highest level since June 7, 2024 at $10,164.5 on Wednesday, March 26, 2025, as US importers continued to aggressively stockpile copper. Copper prices gave up gains after Trump announced a 25% tariff on automotive imports and investors closed positions at high levels, closing the week down 0.70% to $9,783.5.
Copper prices in London edged lower on March 31, ending March at $9,690 as investors awaited details of Trump's tariff announcement.