Copper miners including FCX, SCCO, and TECK dropped 7% as tariff doubts unwound a summer-long scarcity premium, though the broader S&P 500 remained largely insulated from the sector-specific selloff.
Freeport-McMoRan dropped 8% as uncertainty regarding refined-copper tariffs caused a rapid unwinding of the scarcity premium that had recently driven the stock to record highs. As the largest U.S.-based copper producer, FCX is highly sensitive to copper price volatility, and the stock is currently facing additional operational pressure from the September 2025 mud-rush at its Grasberg mine.
The stock fell due to reports that the White House has not yet reached a decision on refined-copper tariffs, causing a reversal of the scarcity premium that had previously inflated copper prices.
The Global X Copper Miners ETF declined 7% as its three largest U.S.-listed holdings—FCX, SCCO, and TECK—sold off in unison following the copper price reversal. Because these three stocks account for nearly 30% of the fund's net assets, the ETF acts as a direct proxy for the market's sentiment toward the broader copper mining theme.
COPX is a clean read on the copper mining sector, as its performance is heavily tied to its largest holdings, which move in lockstep with the copper price curve.
Teck Resources declined 7% as the copper selloff hit the entire mining group, overriding the positive sentiment surrounding its pending merger with Anglo American. While the company expects $800 million in annual pre-tax synergies from the deal, its short-term price action remains tethered to the copper price curve.
The merger targets $800 million in annual pre-tax synergies, though the stock currently trades primarily based on the copper price curve rather than individual company stories.
The S&P 500 ETF fell only 0.41%, confirming that the selloff was isolated to copper names rather than the broader market.
Copper mining stocks plummeted Thursday as uncertainty regarding potential White House tariffs on refined copper triggered a sharp reversal in metal prices. Freeport-McMoRan, Southern Copper, and Teck Resources all fell by at least 7%, erasing recent gains that had pushed the sector to record highs earlier this week.
The selloff was driven by reports that the White House has not yet reached a decision on refined-copper tariffs, causing investors to unwind the scarcity premium that had recently pushed copper prices to record levels.