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Price ratio between copper and aluminium

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The graph illustrates the development of the price ratio between copper and aluminum from 2017 to 2024. When this ratio increases, it means that copper is relatively more expensive compared to aluminum. Conversely, when the ratio decreases, it indicates that copper is relatively cheaper, or that aluminum is strengthening its position in the market. Towards the end of the period, the graph shows a decline in the ratio, suggesting that the price of copper is falling more than the price of aluminum, or that aluminum is experiencing a relative price increase. If this trend is expected to continue, a potential investment strategy could be to sell copper futures and buy aluminum futures. This approach aims to take advantage of a continued reduction in the price ratio, with the expectation that aluminum will perform better than copper in the near future. On the other hand, if one believes that the ratio will reverse and begin to rise again, with copper strengthening relative to aluminum, it m...
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Price development of aluminium and copper

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Spot Price of Aluminium (14 February – 14 March 2025)   Since we published our first blog post on 14 February, the spot price of aluminium has gone through a volatile period. The price started at around USD 2,660 per metric tonne and quickly rose to over USD 2,740 before dropping back to USD 2,600 by the end of the month. In early March, the price surged again and stabilised in the range of USD 2,700–2,720 per metric tonne, before falling slightly towards 14 March. These price movements may have been influenced by electricity prices, expectations of production cuts in China, and uncertainty around trade measures. Aluminium, being extremely electricity-intensive to produce, responds quickly to such factors. What we have observed this month illustrates how sensitive this market is to both policy changes and energy costs. Spot Price of Copper (14 February – 14 March 2025) Over the past month, the copper price has shown clear signs of growing optimism in the market. The spot price star...
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Trump Orders Investigation into Copper Tariffs

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     Source: DALL·E, generated by AI-based image tool from OpenAI President Donald Trump has signed an executive order instructing the U.S. Department of Commerce to investigate potential tariffs on copper imports. The measure is justified on national security grounds, as global overcapacity and dumping have weakened domestic copper production. As a result, the U.S. has become increasingly reliant on imports for critical applications, including weapons systems. According to U.S. Secretary of Commerce Howard Lutnick, such tariffs would strengthen the domestic copper industry. The Department of Commerce has been given  270 days  to complete the investigation and present recommendations. This move could heighten tensions with major copper suppliers, including  Canada, Mexico, Chile, and Peru . Economists warn that these broad tariff measures could lead to  higher prices and economic slowdown , further fueling concerns about an escalating  trade war ....
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How Do the New U.S. Trade Measures Related to Shipping Affect the Copper and Aluminum Markets?

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How Do the New U.S. Trade Measures Related to Shipping Affect the Copper and Aluminum Markets? The latest U.S. trade measures targeting Chinese shipping and vessel construction could have profound implications for the global copper and aluminum markets. With tariffs of up to 60% on Chinese goods and additional shipping restrictions, President Donald Trump’s administration aims to reduce the trade deficit and promote American industry. However, these measures could also trigger unintended consequences, disrupting supply chains and driving up global commodity prices. Source:   Generated by OpenAI's DALL·E, via ChatGPT (2025). Increased shipping costs and supply chain delays The newly proposed fees of up to $1 million per Chinese-operated ship and $1.5 million for Chinese-built vessels are designed to curb China’s dominance in shipping and logistics while encouraging reliance on American vessels. However, experts warn that these measures could backfire. According to international rela...
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Tariffs, Trade, and Future Prices: What’s Happening with Copper and Aluminum?

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  Tariffs, Trade, and Future Prices: What’s Happening with Copper and Aluminum? When Trump imposed tariffs on steel and aluminum in 2018, it led to higher raw material costs in the automotive industry, squeezing profit margins and reducing profitability. If a similar situation unfolds now with aluminum and copper, it could hit industries hard — especially electric vehicles and renewable energy, which heavily rely on these metals. The US is increasing control over the metal market to boost local production and cut the trade deficit. The Trump administration has imposed a 10% tariff on Chinese imports and a 25% tariff on all imported steel and aluminum, set to take effect on March 12. A tariff on copper is also being considered in the near future. But what does this really mean for the market – and for the prices of these critical raw materials? Findings from 2018 suggest that tariff increases did not achieve the intended goal of reducing the US trade deficit. Instead, they led to hi...
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