Copper prices surged after the United States announced a 50% tariff on imports, putting pressure on exporters like Sandfire Resources.
(AI video summary)
This video was created on 9 July 2025 for IG audiences by ausbiz.
Exporters to the United States (US) will face a 50% levy on copper starting 1 August, as announced by President Donald Trump. This caused copper futures in New York to surge by up to 17%. Sandfire Resources, despite recovering slightly, remains down nearly 4.5%.
Operating in Australia, Africa, and Europe, with exploratory projects in the US, Sandfire Resources is dealing with a legal issue at its Black Butte mine in Montana. The US tariff prompts investors to consider whether this is a buying opportunity amid rising global copper demand.
As the copper market navigates new tariffs, Sandfire Resources and the sector face both risks and opportunities.
Analysts recognise copper's long-term potential, essential for the energy transition and infrastructure. They see potential opportunities for US-based producers amid tariff uncertainties but advise patience. While some view Sandfire as a 'buy' if conditions stabilise, others suggest holding due to existing uncertainties.
Analysts suggest exercising caution, recommending exposure through exchange-traded funds (ETFs) instead of buying Sandfire. There is a preference for wider exposure through options like the wire ETF, which includes US producers like Freeport-McMoRan and highlights Rio Tinto as a strategic choice given the tariffs.
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