Copper slides to 3-1/2 month low as inventories jump

LONDON: Copper slid to its lowest since early December on Monday, weighed down by a sharp rise in stockpiles and simmering concerns over the outlook for U.S.-China trade relations.

U.S. President Donald Trump signed a memorandum on Friday that could impose up to $60 billion in import tariffs on Chinese goods. That sparked a sharp drop in equities, with the Dow Jones Industrial Average falling more than 400 points.

Reports that talks have begun to improve U.S. access to Chinese markets helped to allay fears over a potential trade war, leading to a bounce in equities on Monday and an upturn across most other base metals. However, concerns linger that growth, and consequently metals demand, could be hit.

"This was more fallout from the big equity decline we saw on Friday, and then this morning we had a 35,000 tonne increase in stocks," said Societe Generale analyst Robin Bhar.

"I think the worst is over for copper and we should recoup some of those losses ... later this week. (But) that obviously depends on some of the rhetoric that follows what happened on Friday."