en.Wedoany.com Reported - The copper price closed at $6.23 per pound this week, up 3.79% from last Friday, with an average annual price of $5.91 per pound, up 39.55% from the same period in 2025. The Chilean Copper Commission (Cochilco) analyzed that copper prices remain at historically high levels due to expectations of U.S. tariffs on refined copper, increased inventories at the New York Mercantile Exchange (COMEX), and reduced availability of copper outside that market. However, a stronger U.S. dollar, expectations of rising U.S. interest rates, and mixed signals from China have limited the upside for copper prices.

Trade and physical factors provide the main support. The U.S. Department of Commerce's recommendation on possible tariffs on refined copper is expected by the end of June, maintaining the incentive to ship copper to the United States. This expectation has pushed up the premium of the New York Mercantile Exchange (COMEX) over the London Metal Exchange (LME), prompting more copper to be shipped to U.S. warehouses, thereby reducing relative supply in other markets. Supply-side factors also provide support, with several investment banks raising their copper price forecasts due to expectations of slower mining output growth, increased U.S. imports, and structural demand from electrification, power grids, data centers, and artificial intelligence. Additionally, Chile's copper production in April hit a 23-year low, indicating that supply cannot increase rapidly even with high copper prices.

Conversely, the U.S. dollar index remained near two-month highs, with market expectations of tighter U.S. monetary policy rising due to strong employment data and persistent inflation. Data from China showed the official manufacturing PMI fell to 50, while private sector data indicated expansion but at a slower pace, with demand remaining positive but not showing a clear acceleration.

Visible inventories decreased by 5,697 tons this week, totaling 1,143,066 tons. The decline was mainly driven by the Shanghai Futures Exchange (SHFE), where inventories fell by 10,692 tons, a decrease of 5.6%, indicating increased copper absorption in China. Despite the weekly decline, global inventories remain above 1 million tons, 181% higher than the same period last year.

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