Latest news with #Comex-owned
The Sun
a day ago
- Business
- The Sun
White House to clarify tariffs for gold bars
LONDON: The White House plans to clarify what its official called misinformation about import tariffs for gold bars amid uncertainty, which saw some industry players pausing deliveries of bullion to the United States. According to a ruling on the U.S. Customs and Border Protection (CBP) service's website on Friday, Washington may place the most widely traded gold bullion bars in the United States under country-specific import tariffs, a move that would roil the metal's global supply chains. The White House intends to issue an executive order in the near future 'clarifying misinformation' about tariffs on gold bars and other specialty products, the White House official told Reuters on Friday. U.S. gold futures pared gains after the White House comment. They were last up 0.1% at $3,457 per ounce, reducing a premium over spot gold, the global benchmark, which was steady at $3,398. The CBP ruling refers to cast gold bars from Switzerland, the world's biggest bullion refining and transit hub, which is now subject to U.S. import tariffs of 39%. The CBP said that the correct HS customs code to use when supplying 1 kg bullion bars and 100 troy ounce bullion bars, the most traded sizes in the U.S. futures market, to the U.S. would be 7108.13.5500 and not 7108.12.10. However, Washington included only the latter code in the list of products excluded from country-specific import tariffs in April, with 7108.13.5500 not on the list. The Swiss Association of Precious Metals Manufacturers and Traders (ASFCMP) said in a statement that the clarification applied to any country delivering these bars to the U.S. 'The United States is a longstanding market for us, so this is a blow for the industry and for Switzerland,' Christoph Wild, president of the ASFCMP, told Reuters. 'With a tariff of 39%, exports of gold bars will be definitely stopped to the U.S,' Wild said. While Switzerland is the refining and transit hub, Britain is home to the world's largest over-the-counter gold trading hub, and South Africa and Canada are among major gold miners. 'Likely imposing 39% tariffs on Swiss kilobars is akin to pouring sand into an otherwise well-functioning engine. I say 'likely'...the possibility remains that this is an error,' said independent analyst Ross Norman. A major gold refinery in Switzerland stopped deliveries to the U.S. after seeing the CBP ruling, a top manager at the refinery told Reuters, while a gold logistics specialist said some other industry players outside Switzerland did the same. The White House's upcoming executive order 'should hopefully clear things up,' said the logistics source. Protecting the U.S. gold futures during this uncertainty are high stocks of gold in Comex-owned warehouses , after massive inflows over December-March as traders hedged against the possibility of broad U.S. tariffs hitting bullion imports. 'The COMEX inventories currently amount to 86% of open interest - against a more normal 40-45% - so there is no liquidity issue at present,' said StoneX analyst Rhona O'Connell. - Reuters
The Sun
a day ago
- Business
- The Sun
White House to clarify tariffs for gold bars as industry stops flying bullion to US
LONDON: The White House plans to clarify what its official called misinformation about import tariffs for gold bars amid uncertainty, which saw some industry players pausing deliveries of bullion to the United States. According to a ruling on the U.S. Customs and Border Protection (CBP) service's website on Friday, Washington may place the most widely traded gold bullion bars in the United States under country-specific import tariffs, a move that would roil the metal's global supply chains. The White House intends to issue an executive order in the near future 'clarifying misinformation' about tariffs on gold bars and other specialty products, the White House official told Reuters on Friday. U.S. gold futures pared gains after the White House comment. They were last up 0.1% at $3,457 per ounce, reducing a premium over spot gold, the global benchmark, which was steady at $3,398. The CBP ruling refers to cast gold bars from Switzerland, the world's biggest bullion refining and transit hub, which is now subject to U.S. import tariffs of 39%. The CBP said that the correct HS customs code to use when supplying 1 kg bullion bars and 100 troy ounce bullion bars, the most traded sizes in the U.S. futures market, to the U.S. would be 7108.13.5500 and not 7108.12.10. However, Washington included only the latter code in the list of products excluded from country-specific import tariffs in April, with 7108.13.5500 not on the list. The Swiss Association of Precious Metals Manufacturers and Traders (ASFCMP) said in a statement that the clarification applied to any country delivering these bars to the U.S. 'The United States is a longstanding market for us, so this is a blow for the industry and for Switzerland,' Christoph Wild, president of the ASFCMP, told Reuters. 'With a tariff of 39%, exports of gold bars will be definitely stopped to the U.S,' Wild said. While Switzerland is the refining and transit hub, Britain is home to the world's largest over-the-counter gold trading hub, and South Africa and Canada are among major gold miners. 'Likely imposing 39% tariffs on Swiss kilobars is akin to pouring sand into an otherwise well-functioning engine. I say 'likely'...the possibility remains that this is an error,' said independent analyst Ross Norman. A major gold refinery in Switzerland stopped deliveries to the U.S. after seeing the CBP ruling, a top manager at the refinery told Reuters, while a gold logistics specialist said some other industry players outside Switzerland did the same. The White House's upcoming executive order 'should hopefully clear things up,' said the logistics source. Protecting the U.S. gold futures during this uncertainty are high stocks of gold in Comex-owned warehouses , after massive inflows over December-March as traders hedged against the possibility of broad U.S. tariffs hitting bullion imports. 'The COMEX inventories currently amount to 86% of open interest - against a more normal 40-45% - so there is no liquidity issue at present,' said StoneX analyst Rhona O'Connell. - Reuters
Business Recorder
02-08-2025
- Business
- Business Recorder
US copper stabilizes
LONDON: US copper prices stabilised 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 were last up 1.6% at $4.423 per lb, or $9,751 a metric ton, after plunging by 22% on Thursday. Benchmark three-month copper on the London Metal Exchange rose 0.4% to $9,645 a ton by 1607 GMT as the dollar fell after US job growth slowed more than expected in July and traders ramped up bets on how many times the Federal Reserve was likely to cut rates this year. A weaker US currency makes dollar-priced metals more attractive for buyers using other currencies, while lower rates improve prospects for growth-dependent copper. Price pressure was applied by rising copper stocks in LME-registered warehouses and the risk of more inflows from massive inventories in the US after Washington excluded refined copper from its import tariffs. Copper stocks in Comex-owned warehouses are at a 21-year high of 233,977 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 tons. Limiting the prospect of massive outflows from US 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. Trump imposed steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of Friday's trade deal deadline. China, the world's top metals consumer, is facing an August 12 deadline to reach a durable agreement with Washington. On the supply side, Chilean copper giant Codelco said five workers were trapped at the new Andesita unit of its flagship El Teniente mine after a 4.2 magnitude tremor on Thursday. Andesita was due to begin production in the second quarter. Among other LME metals, aluminium rose 0.2% to $2,570 a ton, lead gained 0.2% to $1,974, tin jumped 1.8% to $33,300 and nickel added 0.5% to $15,005. Zinc fell 1.1% to $2,729.
Mint
01-08-2025
- Business
- Mint
US copper stabilises, retains premium over global benchmark
LONDON, Aug 1 (Reuters) - U.S. copper prices stabilised on Friday after the biggest one-day decline on record the previous day as the market continued to assess a surprise move by U.S. President Donald Trump to exclude refined metal from 50% import tariffs. U.S. September Comex copper futures were last up 1.6% at $4.423 per lb, or $9,751 a metric ton, after plunging by 22% on Thursday. Benchmark three-month copper on the London Metal Exchange rose 0.4% to $9,645 a ton by 1607 GMT as the dollar fell after U.S. job growth slowed more than expected in July and traders ramped up bets on how many times the Federal Reserve was likely to cut rates this year. A weaker U.S. currency makes dollar-priced metals more attractive for buyers using other currencies, while lower rates improve prospects for growth-dependent copper. Price pressure was applied by rising copper stocks in LME-registered warehouses and the risk 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 233,977 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 tons. 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. Trump imposed steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of Friday's trade deal deadline. China, the world's top metals consumer, is facing an August 12 deadline to reach a durable agreement with Washington. On the supply side, Chilean copper giant Codelco said five workers were trapped at the new Andesita unit of its flagship El Teniente mine after a 4.2 magnitude tremor on Thursday. Andesita was due to begin production in the second quarter. Among other LME metals, aluminium rose 0.2% to $2,570 a ton, lead gained 0.2% to $1,974, tin jumped 1.8% to $33,300 and nickel added 0.5% to $15,005. Zinc fell 1.1% to $2,729. (Reporting by Polina Devitt Editing by David Goodman, Mark Potter, Alexandra Hudson)
Business Recorder
01-08-2025
- Business
- Business Recorder
US copper stabilises to retain a premium over global benchmark
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.
