SINGAPORE: Copper prices faltered on Tuesday, with the most-traded contract on the Shanghai Futures Exchange (SHFE) edging lower, as lingering caution tempered relief from a US-China tariff truce.
The SHFE contract was down 0.3% at 77,790 yuan ($10,818.89) per metric ton as of 0432 GMT, while the benchmark copper contract on the London Metal Exchange inched up 0.1% to $9,526 a ton.
Industrial metals got a boost on Monday after the Sino-US deal to temporarily slash tariffs, with Chinese duties on US imports to fall to 10% from 125% and US tariffs on Chinese imports to drop to 30% from 145% for the next three months.
Still, the market fears further negotiations could prove a long slog, which was reflected in copper prices.
“78,000 yuan is already not a low level, and the remaining 30% US tariffs on China’s exports, though better than the previous 145%, are still rather high,” said a Beijing-based metals analyst.
He also noted the slowing decrease in SHFE copper inventories last week. SHFE copper stocks fell 10% from the end of April to last week, less than the declines of 23.5% and 32% in the previous two weeks.
Among other London metals, aluminium slid 0.1% to $2,477.5 a ton on Tuesday, zinc fell 0.1% to $2,677, lead gained 0.3% to $1,982.5 and nickel fell 0.7% to $15,520.
China copper stocks set to fall again, heightening supply tightness concerns
Tin dropped 1.2% to $32,200.
SHFE nickel fell 2% to 123,230 yuan, aluminium gained 1.1% to 19,980 yuan, zinc eased 0.6% to 22,185 yuan, lead gained 0.2% to 16,950 yuan, while tin was flat at 261,030 yuan.
Comments
Comments are closed for this article.