A US debt default would create shock waves, not just in the metal market, but in the global financial market as well.
Investors consider U.S. Treasurys as a secure asset, and their role is crucial for the functioning of the financial system.
So a default would significantly undermine confidence in the U.S. economy and its financial stability,
Which, in turn could lead the US dollar to not be considered the global reserve currency anymore.
The U.S. dollar plays a significant role for us in the metals world as it does for many other industries as well.
If the U.S. dollar becomes weaker because of a US default, you would see commodities like copper, which are priced in dollars, become more valuable compared to other currencies.
So we would most likely see a price increase in copper if this would happen.
On the other hand, if we do come up with a solution to not default, we could see even more downward pressure on coppers price, along with other non-ferrous metals like aluminum and brass.
Even though this downward pressure on coppers price is looking like it may happen.
It will ultimately be a good thing in the long run as the repercussions of a default would be much much worse for the United States.