By Burhan Sansarlioglu and Gokhan Ergocun
ISTANBUL (AA) - The price of copper rose to $5.33 per pound, hitting a 10-month high, amid concerns over tariffs and supply as well as optimism that demand in China will increase.
Copper is among the most-demanded products in commodities markets this year.
US President Donald Trump's planned tariffs on copper, concerns about supply due to tightness in the copper market, steps taken by China to support its economy, and the decline in demand for the dollar are among the important factors supporting copper prices.
While Donald Trump's statement that a 25% tariff could be imposed on copper imports influenced the direction of prices, news that the latest US tariffs on copper imports could come in a few weeks triggered a rise in prices.
Signals of tightness in the Chinese market also played a role in the copper rally, while intense activities in the country, especially in network infrastructure and electric vehicle production, pushed up the demand for copper.
A significant fall in copper stocks on the London Metal Exchange and the transportation of copper to the US due to tariff threats also caused supply shortages in Europe and Asia.
Reports of slowing production at Chinese copper smelters also added to these supply concerns.
The news that Glencore, a raw material trading and production company headquartered in Switzerland, will cease operations at its copper smelter in the Philippines also pushed prices upwards.
The rise in copper prices also stemmed amid an expected increase in demand following the approval of Germany's massive military and infrastructure spending plan.
The price per pound of copper rose more than 16% from the end of February and more than 31% from the end of the year.