The increases seen in copper prices may not be long-term

US President Donald Trump has signed an executive order directing the Commerce Department to investigate possible tariffs on copper imports. After Trump signed the executive order, copper rose 4.4 percent to $4.70 per pound today compared to yesterday's close, testing the highest level since February 14. Global concerns about copper supply continue. Copper shortages, especially in mines, are among the major factors triggering these concerns.

On the other hand, due to the ongoing vitality in sectors such as electric vehicles , solar and wind energy in China , demand for copper continues in the physical market in the country. Futures and commodity markets expert Zafer Ergezen, in his assessment to AA correspondent, noted that copper is important for China.

Ergezen, who stated that trade wars were also on the agenda with Trump's tariffs on copper imports, said that the first effects of this were starting to be seen as an increase in copper prices. Ergezen emphasized that copper demand increased in addition to the additional taxes, and said that the reflection of all this was initially seen as an increase in copper prices.

"However, the introduction of taxes may lead to a relative contraction in copper trade," said Ergezen, adding that demand for copper continues on the Chinese side, but the weakness in the Chinese economy also continues.

Noting that even if copper prices initially react upwards within the general structure, there may be pullbacks in prices later on, Ergezen said, "In fact, we can call this carrying Trump's trade wars to the copper front. Even if there are upward movements in copper at first, we can expect the selling pressure to increase."

Ak Investment International Markets Strategist Uraz Çay also stated that copper contracts had a 15 percent premium in the first two months of 2025. Stating that copper is the second best-returning commodity in the Bloomberg Raw Materials Index, Çay said, "When we look at total copper stocks, the total of London, Chicago and Shanghai has increased to 2020 levels again. The amount of net long positioning of hedge funds in futures contracts is also approximately 40 percent of the highest net long positioning of the last year. In short, it can be said that the increase experienced since the beginning of the year has been affected by purchases made for Chinese assets rather than stock levels or financial positioning."

Çay, who reported that copper contracts increased with the news that the Trump administration may impose tariffs on copper imports, continued as follows: "There are two issues to separate here. The place where copper ore is extracted the most is Chile. China's copper ore production ranks fourth in the world. The area that the Trump administration really has its eye on is the part where the ore is processed and exported, and scrap copper. China stands out as having a price advantage on both sides. There is a customs duty study on the reason why the Trump administration wants to revive domestic manufacturing on the copper side in order to protect the supply chain of strategic industries. It is difficult to make clear comments before the US Department of Commerce completes its study, but when it comes to copper, Chile, Canada, Mexico and China are all in on the ball. Therefore, if they are going to focus only on the China side, we need to question the permanence of the positive price effect, which is the first reaction move, in the long term."