Copper prices ease as traders brace for US tariffs
Three-month copper on the LME was down 0.10 per cent at US$9,867.50 a tonne, as of 0101 GMT on Friday. Still, the contract has climbed 0.92 per cent so far this week and is poised for a second weekly gain.
The most-traded copper contract on SHFE receded 0.69 per cent to 79,290 yuan (US$11,083.16) a tonne, but might end the week on a positive note with a 1.16 per cent climb so far.
"Market is just quietly waiting for Aug 1 when all the trade tariffs and US copper import tariffs are supposed to roll out, and some missing details may be available by then," a Beijing-based metals analyst at a futures company said.
The European Commission said on Thursday a negotiated trade solution with the United States is within reach – while EU members voted to approve counter-tariffs on 93 billion euros (US$109 billion) of US goods in case the talks collapse, and US President Donald Trump would impose 30 per cent tariffs on the EU on August 1.
China's Vice Premier He Lifeng will visit Sweden from July 27–30 for a new round of economic and trade talks with US officials, when the deadline on Aug 12 between the two countries may be extended.
The premium of COMEX over LME copper stabilised at 29 per cent on Thursday, remaining below the 50 per cent import tariff planned by Trump, as the market awaited confirmation of the August 1 deadline and a list of the copper products to which the levy would apply.
LME zinc fell 0.25 per cent to US$2,836.50 a tonne, nickel edged 0.06 per cent lower to US$15,455, while aluminium edged 0.06 per cent higher to US$2,648.50, and tin climbed 0.16 per cent to US$34,680.
SHFE tin fell nearly 1.00 per cent to 271,210 yuan a tonne, nickel dropped 0.71 per cent to 123,160 yuan, zinc ebbed 0.70 per cent to 22,820 yuan, while aluminium edged up 0.05 per cent to 20,745 yuan.
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