Copper prices declined on Wednesday amid easing fears of supply disruptions and rising inventories, against a backdrop of uncertainty over the impact of US tariffs.

The benchmark three-month copper contract on the London Metal Exchange (LME) dropped by 0.3% to $9,615 per metric ton during official trading, retreating from its three-month peak above $10,000 recorded on July 2.

“There have been no further supply disruptions that would drive prices higher across the exchanges,” said Nitesh Shah, commodity strategist at WisdomTree.

Protesters in Peru — the world’s third-largest copper producer — ended a more than two-week blockade of a key copper transport route, one of the protest leaders told Reuters on Tuesday evening.

Meanwhile, Rio Tinto reported a 9% increase in quarterly copper output on Wednesday and projected full-year production to be at the upper end of its forecast range. Similarly, Antofagasta posted an 11% rise in copper output for the first half of the year.

In another development, the flow of copper into the US from dealers preparing for tariffs has slowed after the announcement of a 50% tariff set to take effect on August 1.

“Stockpile declines on both the London and Shanghai exchanges have nearly stalled, and we are now seeing stock builds at both sites,” added Shah.

Data on Wednesday showed copper inventories in LME warehouses rose by another 10,525 tons, after surging by one-third over the past two and a half weeks.

Copper contracts on the US COMEX exchange fell 0.9% to $5.53 per pound, widening the price gap between COMEX and LME copper to $2,579 per ton.

Investors also digested Tuesday's data showing that China’s economy slowed less than expected in the second quarter.

“The slightly better-than-expected GDP results reduce the need for additional stimulus, which could weigh on copper prices,” Shah commented.

In contrast, the most-traded copper contract on the Shanghai Futures Exchange rose 0.1% to 77,980 yuan (approximately $10,865.11) per ton.

Other Metals:

Aluminum on the LME dropped 0.6% to $2,566 per ton

Nickel fell 1% to $14,995

Zinc slipped 0.4% to $2,686

Lead declined 0.7% to $1,982.50

Tin lost 1.5% to $32,825

Meanwhile, the US Dollar Index rose 0.2% to 98.8 at 15:53 GMT, after touching a high of 98.9 and a low of 98.4.

In US trading, copper futures for September delivery fell 1.8% to $5.47 per pound at 15:48 GMT.

Cryptocurrency prices and related stocks rose on Wednesday, as investors brushed off a legislative hurdle that derailed what was expected to be a successful week for digital asset regulation.

According to Coin Metrics, Bitcoin climbed 2% to $119,114.79, while Ether gained 3% to reach $3,156.

Shares of Circle, the stablecoin issuer, rose more than 1% in pre-market trading, while Coinbase gained around 0.5%, rebounding after both stocks closed lower the previous day. Ether-treasury stocks extended their rally, with BitMine jumping 24%, SharpLink rising 14%, and Bit Digital up 5%.

On Tuesday, prices briefly dipped after the US House of Representatives failed to pass two key pieces of crypto legislation: the “GENIUS Act” for stablecoin regulation — which had already cleared the Senate — and the more comprehensive “CLARITY Act”, which is still awaiting a vote in the House.

Several industry players, including Coinbase, had hoped both bills would pass together, but only one had been approved by the Senate, and the broader legislation hasn’t yet reached a House vote.

Owen Lau, an analyst at Oppenheimer, told CNBC the market overreacted, emphasizing that it’s a matter of “when, not if” the bills are passed.

“It’s not that bad,” Lau said. “That’s why Coinbase and Circle rebounded in late trading. These stocks might stay under pressure until a vote happens, but eventually, the legislation will pass after negotiations conclude.”

Lau added that whether the bills pass together or separately is less important for the long-term value of the stocks, though markets would react more positively to a unified vote since that would remove uncertainty lasting three to four months.

On Tuesday evening, President Donald Trump said via social media that several House Republicans who had initially blocked the legislation had changed their stance after a White House meeting and would now support its passage.

The current version of the GENIUS Act prohibits stablecoin issuers from offering interest to users, which boosts the role of Ethereum’s ecosystem — favored by institutions — since it underpins many stablecoins and decentralized applications.

Still, Ether’s recent rally is largely driven by momentum and speculation, rather than strong fundamentals.

According to Markus Thielen of 10x Research: “Active addresses haven’t increased, network revenue remains flat, and gas fees are only slightly higher.”

Ether’s price has doubled over the past three months.

Meanwhile, Bitcoin, which had dropped earlier this week after $360 million in long liquidations on Monday, dipped again following the legislative delays but quickly rebounded. On Monday, it had hit an all-time high above $120,000.

Data from SoSoValue showed that Bitcoin ETFs attracted $402.99 million in institutional inflows on Tuesday, while Ether ETFs saw $192.3 million in inflows.

Oil prices held steady on Wednesday, as signs of rising crude consumption in China were offset by investor caution over the broader economic impact of US tariffs.

Prices moved within a narrow range, with stable demand — driven by increased travel during the Northern Hemisphere’s summer — competing with concerns that US tariffs on trade partners could slow global economic growth and reduce fuel consumption.

Brent crude futures fell 17 cents, or 0.3%, to $68.54 a barrel by 08:44 GMT. US West Texas Intermediate (WTI) crude futures dropped 11 cents, or 0.2%, to $66.41 a barrel.

US President Donald Trump has threatened to impose 30% tariffs on imports from the European Union starting August 1 — a level EU officials called unacceptable and warned would effectively end normal trade between two of the world’s largest markets.

The European Commission is preparing to retaliate with potential tariffs on $84.1 billion (€72 billion) worth of US goods if talks with Washington fail to produce a trade agreement.

Trump also said on Monday that the US would impose “very tough” tariffs on Russia within 50 days unless a deal is reached to end the war in Ukraine.

A note from PVM Oil Associates, written by analyst Tamas Varga, stated: “The latest US offensive against Russia has failed to reignite fears of sustained supply disruptions. As a result, oil continued to weaken yesterday.”

Still, improved demand expectations from China helped limit losses.

According to traders and analysts, Chinese state-run refineries are ramping up output after maintenance work, aiming to meet higher third-quarter fuel demand and rebuild diesel and gasoline inventories that have fallen to multi-year lows.

Separately, a monthly report from OPEC on Tuesday projected stronger global economic performance in the second half of the year, which would support oil demand. The report noted that Brazil, China, and India are outperforming expectations, while the US and EU continue to recover from last year’s economic downturn.

Meanwhile, data from the American Petroleum Institute (API), cited by market sources on Tuesday, showed that US crude inventories, along with gasoline and distillate stocks, all rose in the week ending July 11.

According to the sources, crude stockpiles increased by 839,000 barrels, gasoline inventories rose by 1.93 million barrels, and distillate stocks (including diesel and heating oil) climbed by 828,000 barrels.

The US dollar fell against the euro and the Japanese yen on Wednesday, after hitting multi-week highs the previous day. The decline followed US data showing inflation driven by tariffs, prompting investors to scale back bets on interest rate cuts by the Federal Reserve.

Rising prices for a range of goods — including coffee, audio equipment, and home furniture — contributed to an increase in June inflation, with significant hikes recorded for heavily imported items.

This initially strengthened the dollar and pushed US yields higher, though the 10-year Treasury yield later fell by one basis point in London trading to 4.48%, down from Tuesday’s peak of 4.491% — the highest level since June 11.

Investors are now pricing in about 44 basis points of rate cuts by the Fed by December, down from more than 50 basis points earlier in the week.

Against the yen, the dollar slipped 0.1% to 148.65, after reaching a three-and-a-half-month high of 149.19.

The euro ended a five-day losing streak, rising 0.20% to $1.1625. The British pound also climbed 0.15% to $1.3405, after touching a three-week low the previous day.

Tiffany Wilding, economist at PIMCO, said: “The rise in goods inflation linked to tariffs justifies the Fed’s cautious stance, while the continued decline in service prices will support rate cuts in September and beyond.”

She added: “The concentration of inflation in core goods categories will make it easier for the Fed to justify rate cuts, even if overall inflation remains above target.”

Markets are now shifting focus to the US Producer Price Index data due later today, seeking further signals on whether price pressures are truly starting to build.

The US Dollar Index — which tracks the greenback against a basket of major currencies — fell 0.16% to 98.46.

Another factor influencing investor sentiment is speculation that Jerome Powell’s successor as Fed Chair could favor rate cuts.

President Donald Trump has repeatedly attacked Powell for not cutting rates, calling for his resignation on several occasions. On Tuesday, Trump said cost overruns in the Fed’s $2.5 billion headquarters renovation project might be grounds for dismissal.

Michael Pfister, foreign exchange analyst at Commerzbank, commented: “Trump’s attacks on the Fed’s independence are unlikely to stop. A 25-basis-point rate cut won’t satisfy him, as he’s calling for a 300-point cut. That makes it unlikely that the dollar’s current recovery will last long.”

In trade news, Indonesia announced Wednesday that it had reached a deal with the US after an “exceptional negotiation battle,” resulting in proposed tariffs on Indonesian goods being reduced from 32% to 19%.

Separately, Trump said Tuesday that a trade agreement with Vietnam is imminent, adding that more trade deals are in the pipeline, while also revealing new details on planned tariffs targeting pharmaceutical products.