Copper Stocks Drop Amid Tariff Uncertainty
Copper stocks experienced a sharp decline as uncertainty over potential U.S. tariffs on refined copper reversed recent gains in metal prices and miner shares. Freeport-McMoRan (NYSE:FCX) fell 8%, Southern Copper (NYSE:SCCO), and Teck Resources (NYSE:TECK) each dropped around 7%. The Global X Copper Miners ETF also declined by 7%, while the broader S&P 500 only dipped slightly, indicating that the selloff was concentrated in copper-related assets. The drop followed reports suggesting the White House had not yet finalized its decision on tariffs. This uncertainty caused a reversal of the scarcity trade built up over summer and led to a rapid unwinding of price premiums for physical copper. Benchmark three-month LME copper fell 3.1% after hitting record highs earlier in the session. Despite today's losses, major copper miners remain significantly higher year-to-date compared to current levels. Freeport-McMoRan is still up about 40%, Southern Copper by nearly 42%, and Teck Resources around 36%. However, ongoing operational challenges at Freeport’s Grasberg mine in Indonesia continue to pose a risk.
Topics: copper mining_companies stock_selloff tariffs