SMM

[SMM Analysis] This week, the Trump administration suddenly announced that it would impose a 50% tariff on copper starting August 1. Upon the news, COMEX copper prices surged to a record high (the highest price for the COMEX 07 contract was $5.68/lb), with a gain exceeding 13%. Meanwhile, LME 3M copper prices fell to around $9,600/mt due to expectations of suppressed US demand, resulting in a rapid widening of the price spread between the two markets to over $2,500/mt. The policy came with great force but left many uncertainties. This article attempts to briefly analyze the impact of the tariff implementation.