Copper extends losses, driven by uncertainties over US tariffs

Copper fell on Monday, extending losses from last week, as uncertainty over potential US tariffs on refined copper continued to weigh on sentiment and cloud the outlook for tariff-driven inventory flows.

Benchmark three-month copper on the London Metal Exchange was down 0.20% at $14,212 a metric ton by 0313 GMT, while the most-traded copper contract on the Shanghai Futures Exchange dropped 0.39% to 108,240 yuan ($16,139.57) a metric ton.

Copper sold off sharply on Thursday after Reuters reported that the White House had yet to decide whether to impose tariffs on refined copper imports, as officials weigh higher manufacturing costs against efforts to encourage more domestic supply.

Analysts at Chinese broker Everbright Futures said traders remained focused on Section 232 tariff decision, which is expected to come on September 28.

Shifts in the White House’s stance have increased uncertainty over the inventory arbitrage trade, leaving the broker “cautious and bearish” on copper in the near term.

COMEX copper lost more than 4% last week, while stocks in COMEX warehouses declined on Friday for the first time since mid-June, slipping 0.02% from a day earlier to 767,504 short tons, or 696,268 metric tons.

US exchange stocks had risen steadily amid tariff-driven inflows into the country.

Broader sentiment was also weak as Asian equities fell and oil prices rose more than 2% on renewed Middle East supply concerns, adding to inflation worries ahead of US Federal Reserve and Bank of Japan policy meetings this week.

The broader base metal market was mostly under pressure.

Among other metals on the LME, aluminium rose 0.29%, nickel gained 0.10%, zinc fell 0.53%, lead dropped 0.74% and tin lost 0.64%.

On the SHFE, aluminium fell 0.50%, zinc dropped 1.40%, lead declined 1.79%, nickel lost 0.72% and tin tumbled 3.04%.