NEW DELHI: Copper prices in London fell on Wednesday as concerns over looming U.S. tariffs weighed on sentiment, but sharper losses were averted as markets tracked some weakness in the dollar.
The benchmark three-month copper on the London Metals Exchange (LME) eased 1.2% to $9,992 a metric ton, as of 0349 GMT.
The focus is on potential reciprocal tariffs that the Trump administration might adopt on April 2, causing some nervousness in the market.
The dollar took a breather on Wednesday, with weak U.S. confidence data and concerns about the effect of sweeping tariffs on U.S. growth putting the brakes on a recent bounce.
A softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies.
Last month, U.S. President Donald Trump ordered a probe into potential new tariffs on copper imports to rebuild U.S. production of the metal critical to electric vehicles, military hardware, power grids and many consumer goods.
Markets have been tracking the movement of the industrial metal to the U.S. ahead of a decision.
Copper drifts higher, still under the spell of Trump tariffs
“I agree there is significant diversion of units occurring towards the U.S. and stockpiles there are rising,” said Natalie Scott-Gray, a senior metals analyst at StoneX.
“Much of this material will be coming from usual sources i.e., Chile or Canada into the country… Meanwhile, China is at a shortage of material, as units divert to the U.S. from producers like Chile, so they need material and could be taking it from the LME or off-exchange sources.”
Among other metals, LME aluminium was down 0.3% at $2,602 a ton, lead fell 0.7% at $2,069.5, zinc dipped 0.6% to $2,953.5, tin declined 0.99% to $34,705 and nickel eased 0.3% to $16,110 a ton.
SHFE copper was up 0.2% to 81,900 yuan ($11,274.16) a ton, SHFE aluminium was up 0.02% to 20,670 yuan a ton, zinc was down 0.08% at 24,120 yuan, lead declined 0.03% to 17,525 yuan, nickel gained 0.6% to 129,750 yuan, and tin rose 1.2% to 277,530 yuan.
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