Asian Metals Market Update for 26th February

1. March 4: A trade tariff is intended to be imposed on Canada and Mexico.
2. March 12: Tariff is expected to be imposed on aluminum, steel, and other metal imports in the USA.
3. April 4: Trade tariffs will be imposed on a lot of Asian countries, and Europe among others.

Trump orders copper probe

US President Donald Trump has ordered an investigation of copper imports in what is a first step toward potential tariffs on the metal. The US is already a major copper producer, while also importing the metal mainly from Chile, Canada, and Mexico. The so-called 232 investigations by the Commerce Department will look at copper imports, as well as imports of copper "derivatives".

The timeline of the probe was not clear. On a background briefing about the action, a White House official said the results of the investigation would inform the level of possible tariffs.

This is the reason why copper jumped after the CME closed and in early Asian trade. CME costing will change in copper future depending on the trade tariff imposed.

Crude oil fell and is trading with a softer bias over fears that there will be a slowdown outside the USA.The 

• USA has advanced Trump’s tax cut plans and border security. Trump’s tax cut plans should offset the negative growth impact of trade wars.
• USA-Ukraine has agreed on the terms of a draft mineral deal as a part of a peace deal with Russia. The deal does not specify any U.S. security guarantees or continued flow of weapons but says that the United States wants Ukraine to be “free, sovereign and secure.” Future weapons shipments are still being discussed between Washington and Kyiv.

Trade carefully. The series of the above kind of news will increase volatility in precious metals, and non-ferrous metals.

There could be a direct correlation between bitcoin (BTC/USD) and gold price in the short term. Bitcoin sold off and so did the gold price. This implies a short-term correlation between gold price and BTC/USD.

CME COPPER MAY 2025 – Current price $471.80

• CME Copper may have to trade over $471.40 to continue its rise and target $480.90, $488.70, and more.
• Watch $471.40. Copper may move $15-$20 on either side from $471.40 in the future.
• $475-$490 wider zone has seen off and on sharp sell-off in CME copper futures in the past. There can be a new wave of rise if CME Copper May future is able to break and trade over $475-$490 in the next two months.
• Views are intraday.

Disclaimer

• The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
• The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
• I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.

Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.

NOTES TO THE ABOVE REPORT

1. ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
2. Follow us on Twitter @chintankarnani
3. PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
4. PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
5. THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
6. ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
7. ALL NEWS IS TAKEN  FROM REUTERS NEWSWIRES.
8. TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE