KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The global copper market was thrown into turmoil after President Donald Trump imposed 50% tariffs on copper imports, but unexpectedly exempted refined metals, triggering the sharpest price drop in U.S. copper futures history.
What Happened:
Comex copper futures plunged 22%, wiping out a record premium over London Metal Exchange (LME) prices.
Traders who stockpiled copper in the U.S. ahead of tariffs saw profits evaporate as the exemption derailed expectations.
Massive volumes now sit in U.S. warehouses, sparking speculation of potential re-exports.
Market Impact:
The move disrupted what some called the biggest copper trade in decades, after traders rushed shipments to U.S. ports earlier this year.
Comex prices swung from a 30% premium to a discount versus LME copper in just a week.
LME copper slid 1.2% to US$9,578.50/tonne, while Comex copper dropped to US$4.347/pound.
Policy Details:
The 50% tariff covers semi-finished products such as pipes, wires, and electrical components.
Raw materials like ore, concentrates, cathodes, and anodes are exempt.
The Department of Commerce recommended delaying refined copper tariffs, starting at 15% in 2027, rising to 30% in 2028.
Takeaway:
Trump’s last-minute exemption shocked the market, reversing a year of profitable arbitrage trades and highlighting the volatility of U.S. trade policy. While the move provides relief for U.S. buyers, it underscores concerns about America’s ability to rapidly rebuild domestic copper supply chains.
Comments
Post a Comment