Donald Trump’s vow to impose 50 percent rates on copper import is echoed on the market for the world’s most important industrial metal on Wednesday.
Although the American copper prices were shot higher after the US President had yielded his threat on Tuesday, the global prize on the London Metal Exchange on Wednesday, while traders bet that rates would eventually reach the demand for the metal.
“Ultimately, physical demand growth for the buyer will come under pressure worldwide, because electric players try to postpone consumption,” said raw material analyst Tom Price at Panmure Liberum.
The US imports around 60 percent of its copper, with the rest met by the Interior Mines or Recycled scrap.
Stocks Koper on Comex Exchange of New York had this month earlier received record heights on expectations that Trump would ultimately focus on imports. The metal is widely used in electronics, construction and industrial equipment.
The prices for the metal on the Comex fell by 2.1 percent at $ 5.53 per pound on Wednesday morning, after they had risen around 13 percent to a record high in the previous session.
“The reaction to the copper market to Mr Trump’s announcement was fast and furious,” said Ed Meir, a consultant from Marex, a raw material broker, adding that a rate of 50 percent would be a “massive hit” for our consumers.
Howard Lutnick, Commerce -Secretary, said on Tuesday in a CNBC interview that he expected the tasks to be entered as soon as the end of this month.
Traders said that this year’s rush to get the buyer to the US would probably slow down, with shipments arriving after 1 August, will probably be diverted to prevent the rate hit.
