Copper demand in China surged by 38%

China’s copper demand indicator surged by 38% on Wednesday. The reason behind this shift was the announcement of 50% tariffs on the metal by US President Donald Trump. As a result, commodity prices dropped on the London Metal Exchange (LME), according to a report by Reuters.

US Secretary of Commerce Howard Lutnick stated that the tariffs will take effect on August 1. Meanwhile, experts from the news agency suggest that until the duties are imposed, the bulk of China’s copper supplies will come exclusively from Latin America.

Yesterday, the Yangshan premium for the red metal rose to $40 per ton, surpassing Tuesday’s level of $29 per ton. Moreover, the latest copper contract on the LME fell by 1.5% to $9,645 per ton.

Additional uncertainty in the commodities market was fueled by Washington’s unstable policy regarding the country’s copper scrap exports. Despite a sharp decline in purchases by Chinese consumers, the US remains China’s largest supplier of this copper product.