LONDON: Base metals fell in London on Thursday with copper hitting its lowest in more than three weeks as investors feared the new broad U.S. tariffs would stall global growth and affect industrial demand for metals.
Benchmark three-month copper on the London Metal Exchange (LME) was down 1.6% at $9,546.50 per metric ton by 0909 GMT after hitting $9,485, its lowest since March 11.
“Markets are factoring in the negative demand implications of the U.S. reciprocal tariffs and the likely tariff responses from major trading partners. We expect the downtrend to continue at least in the short-term,” said BNP Paribas analyst David Wilson.
As tariff hikes hit global growth expectations, copper consumption prospects and risk appetite, Citi expects copper to retreat to $8,500 by the third quarter. BNP Paribas expects the same mark during the second quarter.
On Wednesday night, President Donald Trump announced reciprocal tariffs that raise effective import taxes to the highest levels in a century.
Copper edges up ahead of US tariffs while tin extends rally
These tariffs include additional 34% levies on U.S. imports from China, the world’s top metals consumer. China’s Foreign Ministry urged the United States to correct its “wrongdoing”.
The White House excluded copper, for which the U.S. administration continues a separate investigation on possible new tariffs, as well as aluminium and steel, already subject to 25% tariffs.
It also added that “other certain minerals that are not available” in the U.S. would not be subject to the reciprocal tariffs.
Meanwhile, LME aluminium lost 0.5% to $2,478 a ton after hitting $2,448, the lowest since September 13.
The contract, which has been falling for 11 consecutive sessions, is under pressure from selling by Commodity Trading Advisors (CTAs), funds that use computer models to track momentum, said a metals trader. He expects this activity to fade soon.
LME zinc slid 1.1% to $2,750.50 and lead dropped 0.5% to $1,959.50 a ton. Both touched their two-month low. Nickel fell 0.5% to $15,880 after hitting a one-month low.
LME tin was down 3.4% at $36,620. It hit $38,395, its strongest since May 2022, on Wednesday on short-covering amid worries that last week’s earthquake in Myanmar would delay the restart of mining and exports from a major tin producing region.
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