Aug. 1 at 5:34 PM
Southern Copper and Freeport-McMoRan Hit Hard as Copper Suffers Worst Day Ever
Copper prices plummeted 22% on record amid U.S. tariffs targeting semifinished copper products, sparking a major selloff. Southern Copper (SCCO) fell nearly 7% this week, while Freeport-McMoRan (FCX) dropped 11%.
The tariffs, though less severe than feared, ended a copper price premium in the U.S., correcting a 40% surge fueled by trader stockpiling ahead of the levies. Market watchers see this as a healthy reset.
However, fundamental risks remain: copper is highly sensitive to economic slowdowns, particularly in the U.S. and China. Weak jobs data boosted bets on Fed rate cuts, while China’s sluggish growth and property market add pressure.
Historical parallels to the 2008 oil spike suggest copper could fall further, potentially returning to around
$3 per pound from its recent
$5.80 peak.
$SCCO $FCX