Copper price slumps into bear market amid tariff fears
Copper prices fell for a third straight day on Tuesday, translating to a 20% decline from their highs in late March and marking an official entry into a bear market, as US tariffs stoked fears of a recession.
A 20% drop from a recent peak is typically defined as entering a bear market.
Investors have been selling the metal since Thursday, as tariffs fueled concerns over a global trade war and a potential economic slowdown.
On the COMEX, copper for May delivery fell to $4.156 per lb. ($9,143/tonne) in morning trade鈥攖he biggest three-day loss on record, according to data compiled by Bloomberg.
鈥淢etals are under significant pressure from dampened sentiment, as the world braces for a possible recession and heightened geopolitical tensions that threaten demand,鈥 Sabrin Chowdhury, head of commodities at BMI, a Fitch Solutions unit, said in a note.
鈥淭he strong likelihood of a severe downturn in metals demand in a full-blown trade war will keep metal prices under pressure in the coming weeks.鈥
Positive outlook
Despite losses driven by Trump tariffs, the head of Chile鈥檚 Antofagasta, Iv谩n Arriagada, said AI and other emerging technologies could help offset declines in traditional consumption caused by economic weakness.
Speaking at the CESCO Copper Conference in Santiago, Arriagada said he expects copper supplies鈥攅ssential for construction and the green energy transition鈥攖o remain tight.
He also noted that President Donald Trump鈥檚 policies could ultimately create a more favorable environment for mining investment.
(With files from Bloomberg and Reuters)
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