Copper Futures Plunge Amid US Tariff Shock

Copper futures on the MCX dropped 4% after the US announced a 50% tariff on semi-finished copper imports. The move impacts global markets, with India facing minor effects due to its net importer status. Overall, the international copper trade could face disruptions and increased volatility.

Copper futures on India's Multi-Commodity Exchange experienced a steep 4% decline, hitting a record low of Rs 861.70 per kilogram, as the US government imposed a hefty 50% tariff on semi-finished copper imports. The tariff, effective from August 1, has stirred volatility across global markets, causing significant price shifts.

India, with annual copper product exports to the US worth USD 360 million, is expected to face minimal impact due to its status as a net copper importer. However, analysts have indicated potential disruptions to global copper flows and heightened market uncertainty.

The tariff has already led to a 22% plunge in US copper futures and a noticeable decrease in prices on the London Metal Exchange. Experts believe the tariff's ripple effects could readjust international copper trade paths and increase geopolitical tensions.

(With inputs from agencies.)