You Have Never seen Anting Like It. Manic Metals Report 07/31/2025

I can tell you confidently that you’ve never seen anything like it, because—let’s face it—it’s never happened before.  The copper market experienced a crash of epic proportions after President Trump laid down the hammer with  a proclamation imposes a universal 50% tariffs on imports of semi-finished copper products and copper-intensive derivative products, effective August 1st.
Though the official close won’t show we saw the biggest single day percentage drop in copper ever in fact we saw prices drop 19% in minutes just after president trump announced new tariffs this is much larger than the drops that we saw during COVID or even back to the 1970s so we’re not finding any drop of this magnitude in copper ever.
Global copper producer ,user and traders were caught off guard. Prior to President Trump’s announcement, it was reported that U.S. copper stocks had risen to a 21 high as users of copper in the United States hoarded supplies in anticipation of this action. Then came the hammer.
Traders and businesses scrambled to get their copper into the country before the tariffs kicked in, and suddenly warehouses in places like Baltimore, New Orleans, and Detroit were packed to the rafters. It was absolute chaos—in the best kind of way—racing against the clock and watching inventories shoot up to levels we haven’t seen in years.
Just before the August 1 deadline, the White House switched things up! Instead of slapping the tariff on all copper, they decided to go easy on the raw stuff—like concentrate, cathodes, and scrap. But if you’re dealing in copper wire, tubing, or sheeting? That’s where the 50% hit is coming.
In anticipation of the tariffs, we saw the Chicago Mercantile Exchange London Metal Exchange spread exceeded $3000 a ton but yesterday the spread came in 20% after the announcement.
Just keep in mind it was only July 8th when copper hit a record high of $5.69 per pound the copper sell off impacted most of the other metals with platinum Palladium silver all getting crushed there was a lot of expectations that when we got through the option expiration today for the end of the month that things could start turning more bullish that was the expectation before the tariff surprise and probably will be the expectation after I’m sure there will be a lot of people trying to pick the bottom here today because the expectations are that we will see the metals recover maybe substantially next month but in the meantime you’ve got to face the mounting margin calls that may keep the volatility high and some traders in a cocoon.
The Fed did not help metals either. Gold prices fell to session lows Wednesday after Federal Reserve Chair Jerome Powell reaffirmed that the central bank is in no rush to cut rates, dampening expectations for a September easing. Now, gold tried to hang on to that crucial $3,300-an-ounce level after the Fed talk, but when Powell dodged giving any real forward guidance, traders hit the sell button. Before you could blink, spot gold was off 1.6% on the day, down to $3,271.90 an ounce.
Powell made it crystal clear: the Fed’s not making any hasty decisions ahead of September. There’s still a mountain of data to come in, and they’ll be weighing every bit of it before making their next move.
He’s likely hoping for inflation since, based on yesterday’s data, the Fed is falling behind the curve.

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