US tariffs pose short-term risks to copper market — Tongling Nonferrous Metals

The new US tariffs will temporarily weigh on copper markets, but in the long run, prices for the metal are still expected to rise due to strong demand from high-tech industries, according to Tongling Nonferrous Metals.

The copper market is facing major challenges, driven primarily by geopolitical tensions and pessimistic forecasts for global economic growth. As a result, Tongling Nonferrous Metals and many other companies have already cut production and postponed scheduled maintenance. The move comes in response to plunging processing fees and fiercer competition, Bloomberg reports.

Processing fees have been declining as Chinese smelters have added capacity in recent years. Yet last month, China's producers hit record-high copper output. As analysts note, shrinking profit margins were partially offset by rising prices of by-products—gold and sulfuric acid.