MONEY MASTER

Summary Copper rebounded sharply on Tuesday after a two-day slump, as the broader metals selloff eased and  dip-buying emerged from China , the world’s largest copper consumer. While short-term momentum has softened, longer-term supply constraints are expected to keep prices elevated. What Happened Copper rose as much as 2%  to  US$13,148.50 per tonne This followed a  15% plunge from last Thursday’s record high Other industrial and precious metals also  recovered part of recent losses On the  London Metal Exchange , copper was up  0.5% at US$12,951 per tonne , while prices on the  Shanghai Futures Exchange  jumped  3.6% . Why Prices Rebounded The recovery was driven mainly by  renewed buying from China : Investors stepped in after the sharp correction Fabricators and manufacturers  restocked ahead of the Lunar New Year  (starting Feb 16) Physical demand returned after weeks of staying on the sidelines Why the Rally Has Slo...

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 ...

Iron ore prices ticked up again on Monday, continuing last week’s rally — just as traders brace for China’s GDP figures, due Tuesday. The Numbers: Iron ore futures  hit  US$99.90/tonne , up 0.4% in Singapore Last week saw a  3.6% gain  — the best weekly performance since January Chinese steel exports  hit a  record high  of  30.7 million tonnes  in Q2 Iron ore imports  surged  22% in June  compared to May What’s Driving the Market? Speculation of stimulus : Hopes are growing that  Beijing will support the ailing property sector  and reduce industrial overcapacity — both crucial for iron ore demand China GDP Watch : If Q2 GDP hits or slightly surpasses the  5% target , that’s good news — but it could  dampen the urgency  for additional stimulus from policymakers Trade diplomacy : Australian mining giants like BHP, Rio Tinto, and Fortescue are in  Beijing this week  alongside PM Anthony Albanese...

The  Trump administration’s sweeping 50% copper import tariff , set to take effect on  August 1 , will reportedly cover  all refined copper , according to Bloomberg sources — a move poised to shake global commodity markets and intensify inflationary pressure across key industries. Why It Matters: Refined copper is a critical material powering everything from  electric grids  and  automobiles  to  electronics  and  construction . By targeting the  largest category of US copper imports , the administration is signaling its intent to  revive domestic production  — but potentially at the cost of higher prices and tighter supply. “This is far-reaching and will have widespread implications for manufacturing and infrastructure,” said one analyst familiar with the developments. Additional Tariff Targets: The scope is also expected to include  semi-finished copper products , broadening the tariff’s impact even further. The pro...

US President Donald Trump has escalated his global trade offensive, announcing a  50% tariff on imported copper  and signaling  imminent levies on semiconductors and pharmaceuticals . This move marks a significant broadening of the trade war and has sent shockwaves across commodities and equities markets. The policy shift further complicates trade negotiations with over a dozen major US partners, including  Japan, South Korea, Brazil, and the EU . Key Highlights: Copper Tariffs Set at 50% US copper futures spiked  +10% , driven by expectations of constrained global supply. Industries at risk:  EVs, power grids, military systems , and  electronics . Potential winners:  US-based copper miners  (e.g., Freeport-McMoRan), select LATAM and African producers not impacted by new duties. Pharmaceutical Sector on Notice Trump floated  200% tariffs on drug imports , though possibly delayed by a year. US  pharma stocks fell , on fears of higher...

 The global copper market has been rocked by the looming threat of US import tariffs, which could severely disrupt the current trading environment. Traders have been scrambling to ship copper to the United States before President Trump’s proposed tariffs take effect, hoping to capitalize on the price differential between New York's Comex and the London Metal Exchange (LME). Key Points: Tariff Impact : US President Donald Trump’s potential 25% tariffs on copper imports have sparked a rush to ship copper into the country before the tariffs arrive. Traders are paying up to $500 more per ton to secure copper for delivery to the US, betting that the tariffs will push prices even higher. Market Disconnect : Prices on the LME are currently trading at a record discount to Comex prices, with a gap of around $1,500 per ton. This price difference has led traders to buy up cheaper copper from international markets to take advantage of the disparity. Risk of Losses : While this trade has been h...

 US copper tariffs could be implemented within weeks, much earlier than initially anticipated, creating a significant global supply squeeze and potentially sparking inflationary pressures. Bloomberg's Brian Fowler shared insights on the potential impact of these tariffs, expected to reach as high as 25%, which would disrupt copper markets globally. Here’s what could happen: Supply Squeeze in the US:  Anticipation of the tariffs has caused a rush of imports into the US, leading to a supply shortage in the country. The US is already experiencing higher copper prices compared to those on the London Metal Exchange (LME), putting additional pressure on US manufacturers who are already paying more for aluminum, steel, and other supplies due to existing tariffs. Increased Manufacturing Costs:  US manufacturers, already burdened by higher material costs, could face even greater challenges. This may reduce the short-term competitiveness of US industries, especially in sectors heav...

Mitsubishi Corp, one of Japan's leading trading houses, has reportedly suffered losses exceeding $90 million (RM402.10 million) due to suspected fraudulent activities by a Shanghai-based copper trader. This incident adds to the growing list of scandals within major commodity trading firms, raising concerns about internal controls in handling billions of dollars in commodities. Details of the Fraud The loss stems from unauthorized trades made by Gong Huayong , a trading manager at Mitsubishi Corporation RtM China Ltd . Investigations revealed that Gong made deals with local companies, some of which were personally linked to him, allowing deferred payments for copper concentrate and refined copper without the company's approval. Mitsubishi dismissed Gong and has filed a criminal complaint against him. Efforts to contact Gong have been unsuccessful, and some reports suggest he left China on business before his actions were fully uncovered. Financial Impact The loss, valued at ¥13...

China’s copper production is expanding rapidly, now expected to supply half of the world’s refined copper this year . This rapid growth in capacity is affecting profitability worldwide and could threaten the viability of plants from Chile to Europe . China, the world's largest copper consumer , has been on a construction spree, adding smelters to secure critical materials for the energy transition . However, this oversupply is creating fierce competition for raw materials, slashing margins across the global industry . Calls to limit China’s output and slow down new smelter construction have gone unheeded. If the expansion continues , copper refining could increasingly shift to China, raising concerns among western governments about China’s control over strategic resources . The issue will take center stage at Asia’s largest copper industry gathering in Shanghai this week . With more smelter capacity than global mine production, miners now hold negotiating power, which could reduc...

  China's largest stimulus package in years has buoyed the commodities market , particularly iron ore, copper, and zinc , as investors anticipate the potential for further gains when mainland markets reopen on Tuesday . The measures, aimed at reviving the property market , have sparked optimism among industry delegates attending LME Week in London, though some analysts caution it may be too soon for celebration. Despite previous limited efforts to stimulate the economy, Beijing’s latest flurry of announcements at the end of September signals a more aggressive approach . This, coupled with monetary stimulus , fiscal spending commitments, and property market stabilization , has driven a spectacular rally in Chinese stocks. Iron ore has surged over 25% since Sept 23, with industrial metals like copper and aluminum also performing well. Global mining giants , including BHP Group and Rio Tinto , have seen their share prices rise amid this optimism. However, analysts stress the nee...

Copper prices edged lower on Friday, influenced by worries over demand in China, the world's top consumer. However, market sentiment was buoyed by stronger-than-expected US economic data, raising hopes for a potential September interest rate cut by the Federal Reserve. Key Points: Copper Prices: Three-month copper on the London Metal Exchange (LME) fell 0.1% to US$9,112 per tonne. The most-traded September copper contract on the Shanghai Futures Exchange rose 0.9% to 74,350 yuan (US$10,259.13) per tonne. US Economic Data: The US economy grew faster than expected in Q2, driven by robust consumer spending and business investment. Inflation pressures eased, supporting expectations of a potential rate cut by the Federal Reserve in September. Dollar Index: The dollar index, which measures the US dollar against six major currencies, remained steady at 104.35. Market Outlook: BMI, a unit of Fitch Solutions, noted that a decline in US dollar strength later in the year would support bas...