Shanghai copper prices eased on Wednesday on fears of an escalation in trade tensions between the United States and top metals consumer China.
The most-active copper contract on the Shanghai Futures Exchange fell 0.2% to 75,370 yuan ($10,347.76) a metric ton by 0504 GMT.
China’s markets were closed from Jan. 28 to Feb. 4 for the Lunar New Year holidays.
China on Tuesday imposed tariffs on some US imports in a swift response to the country’s duties on Chinese goods, raising the stakes in a showdown between the world’s top two economies, even as President Donald Trump offered reprieves to Mexico and Canada.
“This means that China’s exports to the US will be subject to an additional tariff of 10%. This should not lead to any major distortions: only just below 4.5% of China’s copper and aluminium exports go to the US,” Commerzbank said in a note.
The retaliatory measures from China included stricter export regulations for tungsten and four other critical metals.
Market focus will be on whether China announces further stimulus measures to boost its economy amid concerns about the tariff dispute with the United States and persistent worries about slowing demand.
Copper gains as trade tensions fall short of worst-case scenario for now
“We think 2025 will be a range-bound affair (for copper) given elevated interest rates, US tariff uncertainties and increased copper supply going into 2025,” Marex consultant Edward Meir said.
Three-month copper on the London Metal Exchange (LME) rose 0.3% to $9,181.5 a metric ton.
Three-month aluminium fell 0.5% to $2,625. LME zinc was down 0.2% at $2,802 a ton, tin added 0.8% to $30,495, lead climbed 0.4% to $1,978 and nickel gained 0.8% to $15,395.
SHFE aluminium was steady at 20,250 yuan a ton, nickel fell 0.6% to 123,300 yuan, zinc eased 1.3% to 23,325 yuan, lead gained 2.1% to 17,055 yuan and tin advanced 2.6% to 254,740 yuan.