LONDON: US copper prices stabilized on Friday after the biggest one-day decline on record the previous day as the market continued to assess a surprise move by US President Donald Trump to exclude refined metal from 50% import tariffs.
US September Comex copper futures rose 1.1% to $4.4015 per lb, or $9,703.70 a metric ton, by 1006 GMT after plunging by 22% on Thursday.
Benchmark three-month copper on the London Metal Exchange added 0.1% to $9,616 a ton.
Price pressure was applied by rising stocks in LME-registered warehouses and expectations of more inflows from massive inventories in the U.S. after Washington excluded refined copper from its import tariffs.
Copper stocks in Comex-owned warehouses are at a 21-year high of 257,915 short tons (233,977 metric tons) after 176% growth over the March-July period.
Available LME stocks, meanwhile, more than doubled in July and are at a three-month high of 127,475 metric tons.
US copper tumbles on tariff news, LME erodes on tepid demand
Limiting the prospect of massive outflows from U.S. stocks in the short term is the Comex copper futures premium over the LME price, even with this week’s price falls.
“Comex copper’s premium is now only a few hundred dollars, which is still huge historically but nothing compared to the recent $3,000 premium,” one metals trader said.
Adding another layer of pressure on the metal used extensively in power and construction was a private-sector survey showing a drop in Chinese factory activity in July.
China, the world’s top metals consumer, is facing an August 12 deadline to reach a durable tariff agreement with Trump’s administration.
Trump imposed steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of Friday’s trade deal deadline.
Among other LME metals, aluminium fell 0.5% to $2,552 a ton, zinc lost 1.4% to $2,723, lead eased by 0.2% to $1,965.50 while tin rose 1.1% to $32,970 and nickel retreated 0.5% to $14,855.
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