NEW DELHI: Copper prices in London were marginally lower on Tuesday as a stronger dollar weighed, but a further fall was checked as traders priced in the likelihood of increased supplies to the US amid potential tariff concerns.
The benchmark three-month copper on the London Metals Exchange (LME) eased 0.03% to $9,953.5 a metric ton as of 0358 GMT.
The US dollar hit a three-week high against the yen on the day and was firm across the board given a strong US services data and cautious optimism on the tariff front.
A stronger US currency makes dollar-priced metals more expensive for buyers using other currencies.
US President Donald Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks.
Last month, Trump ordered a probe into potential new tariffs on copper imports to rebuild US production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
“Markets look set to nervously monitor for any copper tariff developments over the coming weeks as refined metal heads for the US,” Benchmark Mineral Intelligence said.
“The quarterly China Smelters Purchase Team (CSPT) meeting, which is scheduled to take place next Monday, will be closely watched also, especially in regard to the buying floor for Q2 and any potential coordinated production cutbacks.”
Copper rallies to one-month peak on signs of improving demand
Among other metals, LME aluminium eased 0.3% to $2,608.5 a ton, lead gained 0.4% at $2,044, zinc added 0.03% to $2,947, tin eased 0.2% to $34,290 and nickel climbed 0.4% to $16,075 a ton.
SHFE copper jumped 0.7% to 81,560 yuan ($11,232.15) a ton, SHFE aluminium eased 0.1% to 20,680 yuan a ton, zinc rose 0.3% to 24,125 yuan, lead dropped 0.5% at 17,500 yuan, nickel lost 0.3% to 129,140 yuan and tin slipped 0.8% to 273,900 yuan.
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