Copper slips after disappointment over Trump speech

• It raised the level of uncertainty again, coming at a time when the market's been in risk-on, happy-days mode for the past month.
• If you look at copper, it's breaking down a bit. We've had this uptrend since the start of October, but we failed to break above $6,000 and the 200-day moving average."
• Copper inventories in LME-approved warehouses fell to a five-month low at 224,425 tonnes.

LONDON: The price of copper and other base metals slipped on Wednesday after US President Donald Trump threatened more tariffs on China, disappointing investors keen for a trade deal.

While Trump said in a speech that a phase one trade deal was close, the market focused on his comments about raising tariffs on Chinese goods "very substantially" if a deal fails to be agreed.

"It raised the level of uncertainty again, coming at a time when the market's been in risk-on, happy-days mode for the past month," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

"If you look at copper, it's breaking down a bit. We've had this uptrend since the start of October, but we failed to break above $6,000 and the 200-day moving average."

Last week, copper touched $6,011 a tonne, the highest in more than three months, after gaining about 8% since the start of October.

Hansen said traders were focusing on support at $5,800, a key technical level.

Three-month copper on the London Metal Exchange (LME) shed 0.3% to $5,850 a tonne in official open-outcry trading after touching $5,830, the lowest since Nov. 1. It was on track to fall for a fourth straight session.

COPPER STOCKS:

Copper inventories in LME-approved warehouses fell to a five-month low at 224,425 tonnes, while stocks in warehouses tracked by the Shanghai Futures Exchange have declined 44% since March to 148,687 tonnes.

CHILE COPPER:

Most of Chile's copper miners said they had maintained their operations on Tuesday, albeit with some delays and sporadic unrest, amid calls for a general strike and a fresh day of social protests.

ALUMINIUM DEMAND:

China's aluminium consumption is seen falling for the first time in 30 years this year as domestic demand and exports decline, research house Antaike said.

ALUMINIUM POSITION:

The LME net speculative short position had reduced to just 1.2% of open interest at Monday's close, down from a recent peak of 31% in early October, Alastair Munro at Marex Spectron said in a note, referring to the broker's position estimates.

PRICES:

LME aluminium eased 0.5% in official rings to $1,769 a tonne, nickel fell 0.9% to $15,515 and zinc declined 1.4% to $2,437.

Lead, untraded in rings, was bid down 1.1% to $2,036, the lowest since Sept. 6, while tin added 0.1% to trade at $16,350 after touching $16,020, the weakest since Oct. 1.