SINGAPORE: Copper prices inched lower in London and Shanghai on Thursday, as markets remained under pressure ahead of the United States’ 50% import tariff on the metal and broader trade levies set to take effect on August 1.
Three-month copper on the London Metal Exchange eased 0.07% to $9,628 per metric ton, as of 0123 GMT, and the most-traded copper contract on the Shanghai Futures Exchange ticked down 0.04% at 77,930 yuan ($10,855.12) a ton.
With the 50% tariff announced by US President Donald Trump, the US market is likely to draw on existing stockpile, putting downward pressure on COMEX copper prices and LME copper prices in the short term, ANZ said.
Among the ongoing trade talks, the US is very close to a trade deal with India, while an agreement could possibly be reached with Europe, but it is too soon to say whether a deal can be agreed with Canada, Trump said in an interview aired on Real America’s Voice on Wednesday.
By Wednesday, copper stocks at the LME-registered warehouses gained 10,525 tons to 121,000 tons, and the LME’s eight registered warehouses in Hong Kong, which went into formal operation on Tuesday, received 5,975 tons of copper, 396 tons of nickel, 100 tons of zinc, and 25 tons of tin.
The LME has set up these warehouses, aiming to increase its presence in Hong Kong, which is the gateway to China, the world’s biggest metals consumer.
LME tin gained 0.67% to $33,020 a ton, while zinc eased 0.35% to $2,701.5, lead slipped 0.13% to $1,974, and aluminium ticked down 0.12% at $2,574.5.
SHFE nickel fell 0.8% to 119,640 yuan a ton, tin dropped 0.32% to 262,640 yuan, lead was down 0.27% at 16,850 yuan, while zinc gained 0.32% to 22,085 yuan, and aluminium edged up 0.1% at 20,450 yuan.
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