LONDON: Copper and aluminium prices rose in London on Tuesday, pausing a sharp sell-off triggered by worsening expectations for global economic growth.
Benchmark three-month copper on the London Metal Exchange was up 0.5% at $8,775 a metric ton by 1015 GMT. The metal used in power and construction is down 9.5% since President Donald Trump sent jitters across global markets with his “reciprocal tariffs” announcement last week.
“Most of the bad news is now priced in,” one metals trader said. “If there can be some sort of progress with trade deals, then the markets will probably start to head higher.”
For now, Trump’s higher tariff rates are due to take effect on Wednesday. For top metals consumer China, this brings an additional 34% tariff, lifting the total new levy to 54%. That would then trigger a Chinese retaliatory duty of 34% on all US goods.
Trump said on Monday that the US would impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory tariffs. China stated it will never accept what it described as US blackmail. Copper is excluded from the reciprocal tariffs but is subject to a separate ongoing investigation of possible new US import tariffs. “The most likely path from here is some choppy, consolidation type action before determining the next move,” said Alastair Munro at broker Marex. The Comex futures premium over the LME benchmark has dropped by 52% since the start of April, Comex inventory inflows continue, building on a six-year high. In other metals, LME aluminium rose 0.4% to $2,381 a ton. Already subject to a 25% US import tariff, aluminium had fallen for 13 sessions running and is down 11% since March 19. Zinc fell 1% to $2,586.50 a ton, lead added 0.1% to $1,871, tin slid 2.1% to $33,220 and nickel gained 0.8% to $14,475.
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