Copper market down over 20% today

[Mosby]

6. Copper Prices Decline on Surprise U.S. Tariff Exemption

Copper prices fall as the U.S. introduces a surprise exemption for refined metal in its copper products tariff. LME three-month copper is down 1.1% at $9,622.0 a metric ton. Prices on U.S. commodities exchange Comex plummeted more than 20% on the exemption news, which will have left some U.S.-based commodity trading funds long on physical metal, SP Angel analysts say in a note. Traders had spent months directing flows of copper into the U.S. in order to frontload the expected tariff. This significantly pushed up the U.S. premium for the metal but that is now rapidly unwinding, SP Angel says. There has been very little trading of copper within the U.S., so much of the loss from long position holders will likely be on import and storage costs, analysts add.

https://www.wsj.com/finance/commodities-futures/gold-edges-higher-on-possible-position-adjustments-befe075e