SINGAPORE: Copper prices on the London Metal Exchange and the Shanghai Futures Exchange were rangebound on Monday as investors assessed the impact of trade talks between the U.S. and its major partners and a 50% import tariff on the metal.
Three-month copper on the LME inched up 0.07% to $9,667.5 per metric ton by 0104 GMT, while the most-traded copper contract on the SHFE fell 0.37% to 78,240 yuan ($10,915.03).
U.S. President Donald Trump said on Saturday he would impose a 30% tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries and leaving them less than three weeks to hammer out framework deals that could lower the threatened tariff rate.
This follows a 50% tariff imposed on copper imports, which will also be effective on August 1.
“It’s uncertain where copper demand will go with all these tariffs. The U.S. has imported quite a lot of copper before the tariff announcement, so we’re wondering whether China, as the largest consumer and producer, will stock up some too, as it is crucial to the military and economy,” a Shanghai-based metals analyst at a futures company said.
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Copper inventories in SHFE-monitered warehouses remained low, down 4% on-week at 81,462 tons as of July 11.
Meanwhile, China will release trade data for June and for January-June on Monday, which will probably be positive news with the frontloading amid tariff uncertainties, a Beijing-based metals analyst at a futures company said.
LME nickel shed 0.55% to $15,115 a ton, aluminium fell 0.54% to $2,589, and tin eased 0.29% to $33,550.
SHFE aluminium fell 1.16% to 20,475 yuan a ton, zinc slipped 0.89% to 22,220 yuan, nickel dropped 0.78% to 120,240 yuan, lead eased 0.44% to 17,030 yuan, and tin was down 0.43% at 264,500 yuan.
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