Core Viewpoint - The recent escalation of the trade war between the U.S. and China has significantly impacted copper prices, leading to a sharp decline in both spot and futures markets due to heightened concerns over global supply chain disruptions and reduced industrial demand [3][6][8]. Price Movements - On April 7, SMM 1 electrolytic copper spot prices fell sharply to a range of 73,820 to 75,400 yuan/ton, with an average price of 74,610 yuan/ton, down 4,540 yuan/ton from the previous trading day [3]. - The futures market also saw a significant drop, with the Shanghai copper futures closing at 73,640 yuan/ton, down 5,550 yuan, marking a decline of 7.01% [3]. Trade War Impact - The U.S. announced a 34% tariff on imports from China, prompting retaliatory measures from China, which has led to increased fears of a global economic slowdown and reduced demand for industrial metals, particularly copper [3][4][6]. - Despite copper not being included in the initial tariff list, the market reacted negatively, with COMEX copper futures dropping over 14% in the week following the announcement [5][6]. Market Sentiment - Analysts indicate that the trade tensions have escalated market volatility, with copper prices reflecting a pessimistic outlook on industrial demand due to the uncertainty surrounding global economic stability [6][8]. - The LME copper price fell by 8.95% and COMEX copper by 10.21% since the announcement of the tariffs, indicating a significant market reaction to the trade war [6]. Future Outlook - Short-term projections suggest that copper prices may continue to experience high volatility, with potential fluctuations between 70,000 and 80,000 yuan/ton, depending on the developments in the trade war [12]. - Long-term expectations indicate that copper prices may stabilize in a range of 65,000 to 90,000 yuan/ton, driven by structural changes in demand, particularly in the renewable energy and data center sectors [12][13].