Copper Gains Traction to 1-Month High

Copper futures in the US were above $4.56 per pound in September, gaining some traction to a one-month high as fresh government regulations in China momentarily pressed supply in the world's top producer. In its ongoing overhaul to curb overcapacity, the Chinese government removed subsidies for plants that recycle scrap copper, supporting margins for ore refiners that have struggled with negative treatment charges. The developments allowed US copper futures to enjoy some respite after the plunge triggered by the US government removing refined copper from its tariffed goods list. Washington announced that levies would only apply to imports of semi-finished copper products in wires and pipes instead of concerns of broader tariffs. The move triggered a record-setting selloff in copper futures of nearly 20% within the session on the unwinding of warrants and metal that was shipped to the US to undercut the imposition of taxes.