Industry Overview - Copper prices declined in thin trading on the London Metal Exchange, influenced by rising stockpiles and a selloff in US technology stocks [1] - Futures in London fell as much as 2.1%, dipping below $12,600 a ton, with global inventories reaching the highest level since March [2] - Industrial demand for metals like copper has cooled in China, the world's largest consumer, due to near-record prices [3] Market Dynamics - The LMEX Index, which tracks six main base metals, hit a record last month due to Chinese buying and a weaker US dollar, but has since retreated as traders await new catalysts [4] - BHP Group reported a more than 20% increase in first-half earnings, with copper now accounting for over half of the company's profits, despite weaknesses in its China-focused iron ore and steel-making coal businesses [5] - Antofagasta Plc also reported record core earnings, but its shares fell due to declining copper and gold prices impacting mining stocks [5] Current Trading Conditions - As of 4:38 p.m. in London, copper futures were 1.5% lower at $12,657 a ton, with nickel down 1.4% and lead also declining [6]

Copper and other industrial metals rose, with traders anticipating a third consecutive interest-rate cut by the Federal Reserve. https://t.co/6twNqntl3b ...

Market Trends - Aluminum advanced with copper and other industrial metals [1] - Hopes rose for an end to a weeks-long shutdown of the US government, impacting industrial metals [1]

Inflation & Tariffs - Tariffs are contributing to inflation, with import prices (excluding food and energy) rising 04% in May after a 05% increase in April [3] - Companies with pricing power will pass tariff costs to consumers, while those without will absorb costs via margin cuts [4] - Helen of Troy plans to raise consumer prices by 7% to 10% this summer, while ConAgra faces 7% cost increases due to commodity, labor, steel, and aluminum inflation [4][5] - Levi's anticipates only a 2% to 3% price increase, mitigating most tariff impacts, suggesting a separation of winners and losers based on pricing power [6] - Even if Levi's absorbs costs, someone in their supply chain is still bearing the tariff burden [7] Commodity & Industrial Metals - The CRB raw industrials index matched its March level, the highest since January 2023, indicating rising industrial metal prices [10] - Silver reached its highest level since 2011, and platinum is up about 30% in the past few months, reflecting a global rise in industrial metals [10][11] - The rise in metal prices is attributed to preemptive buying ahead of potential tariffs and the strategic importance of critical minerals in a multi-polar world [11] - Higher metal prices will flow through the supply chain, impacting inflation regardless of whether consumers absorb the costs [12] Company Strategies - Some companies can mitigate tariff effects, while others face margin pressure or need to raise prices [6][7] - Companies are trying to get their hands on metals ahead of potential tariffs [11]

Investment Strategy - The panel advocates for increased allocation to precious and industrial metals in investment portfolios [1]