Metals: Comex/LME copper arb surges – ING

FXStreet Insights Team FXStreet

Comex copper futures surged more than 5% yesterday after US President Donald Trump proposed a 25% tariff on copper imports, ING’s commodity analysts Warren Patterson and Ewa Manthey note.

COMEX copper pushes LME copper prices higher

"The move in COMEX copper also pushed LME copper prices higher. The COMEX/LME arb widened back towards $1,000/t on the back of the news. Last week, Trump instructed the US Commerce Department to mull potential copper import tariffs. The market anticipated a relatively long investigation before tariffs are implemented. The latest indications are that the copper tariff could be enforced sooner."

"China’s National Development and Reform Commission pledged to enforce production cuts in the country’s steel and oil industry. The aim would be to improve industry profitability and reduce pollution. China’s steel production remains above 1bn tonnes despite Beijing’s efforts to reduce capacity. Industry estimates suggest that cuts of around 50mt could be implemented."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD stays bid near 1.1650 ahead of Fed rate decision

EUR/USD keeps the green near the 1.1650 level in the European session on Wednesday. Markets turn cautious and ignore the US Dollar ahead of the US Federal Reserve interest rate decision later on Wednesday, where a 25 bps rate cut is almost fully priced in. Meanwhile, cautious ECB-speak keeps the Euro afloat.

GBP/USD holds gains above 1.3300, eyes on Fed outcome

GBP/USD trades on a firmer note above 1.3300 in Wednesday's European session. The US Dollar weakens against the Pound Sterling as the US Federal Reserve is widely expected to announce another interest rate cut on Wednesday. Next of note will be the UK monthly Gross Domestic Product (GDP) report that will be published on Friday.

Gold struggles around $4,200, looks to Fed for fresh impetus

Gold extends its sideways consolidative price move through the European session and trades around $4,200 this Wednesday. Traders now seem reluctant and opt to wait for the outcome of a two-day FOMC policy meeting later in the day. The key focus will be on updated economic projections and Powell's speech.