Copper Futures Tumble Amid US Tariff Announcement

Copper futures on the Multi-Commodity Exchange witnessed a notable slump on Thursday, reaching a record low of Rs 861.70 per kilogram. This downturn followed the US administration's declaration of a 50 per cent tariff on the import of semi-finished copper products, which will take effect on August 1.

The newly imposed tariff aims to curtail copper imports into the US, citing national security concerns. This measure, however, has sent shockwaves through global markets, with copper futures on the Comex in the US plunging by nearly 22 per cent. Simultaneously, prices on the London Metal Exchange also dipped, reflecting the tariff's far-reaching impact.

Industry analysts suggest that while India may encounter higher costs for its copper exports to the US, its position as a net importer of the metal might mitigate any severe adverse effects. Meanwhile, supply chain realignments and increased geopolitical tensions could continue to influence global copper prices and trade dynamics.

(With inputs from agencies.)