RBC notes signs of weakening in copper supply and demand

According to analysts at RBC Capital Markets, the recent surge in copper imports to the US ahead of potential tariff hikes has contributed to the red metal’s rally. Since the beginning of 2025, the price of copper on the Comex exchange has jumped by 11%, as stated in the analysts' note. The asset began trading at a premium to the global market.

Based on government data, industrial metal imports to the United States totaled over 123,000 tons in March, compared to 58,000 and 76,000 tons in February and January, respectively.

Despite this trend, RBC strategists led by Sam Crittenden noted a weakening in copper supply and demand. Therefore, Donald Trump's refusal to impose tariffs on this metal could negatively impact prices. Analysts also point to a temporary slowdown in consumption due to a decline in manufacturing activity in China and a seasonal lull in construction during the summer months.

As noted by RBC, future prospects depend on global trade. Improved relations between China and the US could positively impact the outlook for copper demand in 2026. Trump and Xi Jinping are set to meet this week, and investors hope the meeting will lead to an easing of trade tensions.