Citigroup strategist expects copper prices to fall by up to 10% in coming weeks

According to Max Layton, Global Head of Commodities Research at Citigroup Inc, a new series of tariffs by the US administration will lead to a fall in prices of all commodities.

In particular, he reckons that copper prices will drop another 8–10% in the coming weeks. On Thursday, the red metal already fell in value by 3.4% amid expectations of a decline in global demand due to the introduction of large-scale tariffs by the US.

Layton believes that the Donald Trump administration's new trade policy will result in lower costs of production due to decrease in oil prices or reduction in producer margins. He expects that to happen over the period of 6 to 12 months.

After the announcement of the new US tariffs targeting all the country's trading partners — from China to the European Union — oil prices fell to the lowest since 2022. An additional factor reinforcing the bearish sentiment was OPEC+'s unexpected decision to increase production more aggressively than previously anticipated.