Latest news with #LME
Mint
14 hours ago
- Business
- Mint
Rising LME stocks, mixed China data keep copper steady
LONDON, - Copper prices were little changed on Tuesday as mixed data from top metals consumer China was balanced by pressure from rising available inventories in warehouses approved by the London Metal Exchange. The price of benchmark copper on the LME fell 0.1% to $9,613 a metric ton by 0945 GMT. On the technical front, the contract is sandwiched between its 50-day and 100-day moving averages at $9,659 and $9,567, respectively. Copper, used in power and construction, is down 2.6% so far in July as exports to the United States became less appealing after Washington said last week it planned to impose a 50% import tariff on copper from August 1. "LME copper should fall modestly as the 'extra' U.S. front loading demand eases, allowing inventories to replenish, but downside appears limited," Morgan Stanley said in a note. As Washington's announcement left three weeks until the tariff deadline, the amount of the metal marked as being prepared for delivery out from the LME warehouses fell to only 11% of the total stocks. At 12,625 tons the so-called cancelled stocks are at the five-month low compared with 56,325 tons a month ago. Meanwhile, data in China showed that the economy slowed less than expected in the second quarter in a show of resilience in the face of U.S. tariffs, with June industrial output rising 6.8% year-on-year, ahead of expectations. However, with new home prices falling at the fastest monthly pace in eight months, China promised to build liveable, sustainable and resilient cities in the next phase of its urban development, abandoning breakneck urban growth that once super-charged its economy. The dollar hovered just below a three-week high on Tuesday, ahead of the release of U.S. inflation data that could give traders a steer on the near-term outlook for interest rates. LME aluminium rose 0.2% to $2,597 a ton, zinc lost 1.0% to $2,702.50, lead eased 0.5% to $1,992, while tin and nickel fell 0.4% to $33,355 and $14,995, respectively. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
20 hours ago
- Business
- Business Recorder
Copper prices fluctuate as China GDP meets forecast, markets eye US data
SINGAPORE: Copper prices on the London Metal Exchange and the Shanghai Futures Exchange saw narrow fluctuations on Tuesday, as China's GDP growth aligned with forecast, while traders awaited U.S. inflation data and potential monetary policy shifts. Three-month copper on the LME was up 0.27% at $9,644.5 per metric ton, as of 0203 GMT, while the most-traded copper contract on the SHFE eased 0.33% to 78,030 yuan ($10,883.30) a ton. China's GDP grew 5.2% during April-June, slightly lower than the 5.4% in the first quarter, and the country's GDP growth for the first half of 2025 was at 5.3%, with fixed asset investment up 2.8% year-on-year, according to China's National Bureau of Statistics. 'Metals market will not be reacting much so long as the China's GDP growth for the first half is above 5%, and for the rest of 2025 and in the longer term, it is more about how Beijing will be dealing with the overcapacity in many industrial sectors and cut-throat competition,' a Shanghai-based metals analyst from a futures company said. China's GDP was projected to grow 5.1% year-on-year in April–June, slowing from 5.4% in the first quarter, according to a Reuters poll. Copper prices rangebound amid US trade talks, 50% metal tariff The dollar hovered near a three-week high against major peers, as traders awaited U.S. inflation data for clues on monetary policy and the potential departure of Federal Reserve Chair Jerome Powell amid continued criticism from U.S. President Donald Trump. LME aluminium inched 0.17% higher to $2,596.5 per ton, while nickel fell 0.13% to $15,045, and tin was trading flat at $33,515. SHFE nickel fell 1.1% to 119,440 yuan per ton, tin dropped 0.47% at 264,960 yuan a ton, zinc slipped 0.36% to 22,125 yuan, lead was down 0.18% at 17,030 yuan, and aluminium edged 0.07% lower to 20,420 yuan a ton.
Business Recorder
a day ago
- Business
- Business Recorder
Copper slides as available LME inventories jump
LONDON: Copper prices fell on Monday after a jump in available inventories in London Metal Exchange-approved warehouses and a firmer dollar triggered selling while above-consensus loan data from top consumer China provided some support. Benchmark copper on the LME traded 0.7% lower at $9,595 a metric ton in official rings. Strong technical support exists around $9,565, the 100-day moving average. At 109,625 tons, headline copper stocks in LME warehouses are only up 900 tons. However, traders are looking at inventories that were cancelled or earmarked for delivery but were then re-warranted. More than 26,000 tons of copper that was due to leave the LME system in Asia was re-warranted, meaning those volumes can again be traded on the exchange. President Donald Trump last week announced a 50% copper tariff effective August 1. Traders said the cancelled inventories had likely been intended for shipment to the United States ahead of import tariffs, which the industry had expected would be announced in November. Logistics sources said the three weeks between the announcement and the August 1 deadline did not allow enough time to ship metal from Asia. Higher availability on the LME has widened the discount for the cash copper contract against the three-month forward contract to $50 a ton, the highest since April 23. Elsewhere, improving Chinese loan data suggested stimulus measures boosted credit demand during the US-China trade truce. Particularly encouraging was total social financing, used by analysts as a gauge of industrial metals demand, rising to 8.9% last month from 8.7% in May. 'Apart from tariffs, the other discussion is about Chinese stimulus,' said Bank of America analyst Michael Widmer. 'There's a possibility they are taking a closer look at overcapacity in some industries. It may mean they try to support the housing market.' Clues to Chinese demand are expected to come this week from China's housing price, industrial production and GDP data. Overall, a firmer US currency is weighing on industrial metals. Aluminium was down 0.7% at $2,584, zinc slipped 0.7% to $2,720, lead fell 0.8% to $2,005, tin was flat at $33,650 and nickel retreated 0.7% to $15,095 a ton.
SowetanLIVE
2 days ago
- Automotive
- SowetanLIVE
Trump's copper tariffs pile more metal misery on US car industry
US President Donald Trump's threat of a 50% tariff on copper imports is raising alarm in the US car sector as it could make it even harder for carmakers and suppliers to absorb border taxes and rising costs, executives and industry experts say. The duties on their own may be manageable, but prices of the red metal vital for making cars, in particular in wire harnesses and motors for electric vehicles, have soared to record highs. The US market is heavily reliant on imported copper, aluminium and steel, and developing new capacity could take years so users are scrambling to buy metal from a limited number of suppliers, spurring price rises. Added to import tariffs on the metals, and higher prices in the US, the extra costs are compounding the financial strain on carmakers and parts suppliers, interviews with a dozen executives, industry analysts and experts show. Carmakers have been relying on inventories to avoid raising prices, but could be forced to pass on mounting import tax costs to consumers. Some, including Ford and Toyota, have announced hikes to mitigate other Trump-induced tariffs, while Porsche expects a €300m (R6,285,306,000) hit to results from tariffs for April and May alone. "This (a copper tariff) complicates a difficult situation" for the car industry, said Daan de Jonge, lead analyst for copper demand and prices at Benchmark Mineral Intelligence. Trump's announcement of the tariff ast week propelled prices on US platform Comex to a record $5,682 (R102,044) a pound (0,453kg) or $12,526 (R225,018) a metric ton, a premium of more than $2,920 (R52,459) a ton over the price on the London Metal Exchange, around $9,600 (R172,469) a ton, which the market uses as the global benchmark. The rate is effective from August 1. The US Midwest duty-paid aluminium premium paid on top of the benchmark LME price for physical delivery has tripled to 60 US cents (R10,71) a pound since Trump was inaugurated. In the same time, the LME price has slipped 3% to $2,604 (R46,783) a metric ton. US top carmakers GM , Ford and Jeep maker Stellantis declined to comment.
Time of India
2 days ago
- Automotive
- Time of India
Trump's copper tariffs pile more metal misery on US auto industry
U.S. President Donald Trump 's threat of a 50per cent tariff on copper imports is raising alarm in the U.S. auto sector, as it could make it even harder for carmakers and suppliers to absorb border taxes and rising costs, executives and industry experts say. The duties on their own may be manageable, but prices of the red metal vital for making cars, in particular in wire harnesses and in motors for electric vehicles, have soared to record highs. The U.S. market is heavily reliant on imported copper, aluminium and steel, and developing new capacity could take years, so users are scrambling to buy metal from a limited number of suppliers, spurring price rises. Added to import tariffs on those metals, as well as higher prices in the United States, the extra costs are compounding the financial strain on carmakers and parts suppliers, interviews with a dozen executives, industry analysts and experts show. Carmakers have so far been relying on inventories to avoid raising prices, but could be forced to pass on mounting import tax costs to consumers. Some like Ford and Toyota have already announced hikes to mitigate other Trump-induced tariffs, while Porsche expects a 300-million euro ($351 million) hit to results from tariffs for April and May alone. "This (a copper tariff) complicates an already difficult situation" for the auto industry, said Daan de Jonge, lead analyst for copper demand and prices at Benchmark Mineral Intelligence. Trump's announcement of the tariff this week propelled prices on U.S. platform COMEX to a record $5.6820 a pound or $12,526 a metric ton, a premium of more than $2,920 a ton over the price on the London Metal Exchange, currently around $9,600 a ton, which the market uses as the global benchmark. The rate is effective August 1. The U.S. Midwest duty-paid aluminium premium paid on top of the benchmark LME price for physical delivery has tripled to 60 U.S. cents a pound since Trump was inaugurated. In the same period, the LME price has slipped 3per cent to $2,604 a metric ton. U.S. top carmakers GM, Ford and Jeep maker Stellantis declined to comment for this story. SUPPLIERS PASS ON SOME COSTS After a chaotic week in the copper market, suppliers to carmakers have already asked their customers this week to pay more for their product because they cannot afford the additional costs, experts say. A source at a major auto supplier in the U.S. market said the company had seen "meaningful" impact from elevated copper, aluminum and steel prices. This creates both commercial friction and structural cost gaps, said the source, who spoke on condition of anonymity because they were not authorised to discuss the issue publicly. Even before any tariff takes effect, users are paying more for their U.S. copper. Takashi Imamura, an executive officer at Japanese trading house Marubeni said on Wednesday a copper tariff would mean higher costs for U.S. consumers. "When they (the U.S. government) reconsider the damage, my final expectation is that they will reduce or eliminate the tariffs," Imamura said. Parts suppliers are feeling the squeeze. Melanie White, president of suspension parts maker Hellwig Products, said steel prices have quadrupled since 2018. Steel tariffs have caused a rush to source from U.S. providers, making it harder to secure supplies. White said the roughly 50-person business has cut costs by putting off equipment purchases or not rehiring for certain vacant positions. "It has affected a lot of things," she said. COSTS Benchmark's de Jonge said that at pre-tariff rates, steel, aluminium and copper accounted for around 5% of a vehicle's production costs in the United States. With tariffs, that rises to up to 9per cent, he said. Based on estimates from Cox Automotive and Benchmark Mineral Intelligence on tariffs already in place combined with the planned copper rates, the U.S. auto industry would pay on average minimum duty of $1,700 for every car made in the U.S. and $3,500 per car imported from Canada and Mexico that complies with the USMCA trade deal. It would be as much as $5,700 for every car imported from elsewhere. Those numbers add up fast in a low-margin industry where the average U.S. new vehicle selling price in June hit $46,233, according to consultancy J.D. Power. Consultancy CRU Group estimates the average combustion-engine or hybrid car requires about 24 kg (53 pounds) of copper, while the average fully-electric car needs around 59 kg. Dan Hearsch, global co-leader for automotive and industrials at consultancy AlixPartners, said supplier agreements tend to be indexed to copper prices and revised every few months. But the spike in copper prices this week has forced auto suppliers to go to customers and "say, 'Hey, we need to talk about this on top of all our other tariff conversations,'" Hearsch said. Some in the industry remain skeptical that the copper tariff will actually be implemented. Trump has a history of delaying or walking back tariff threats. Andy Leyland, co-founder of supply chain specialist SC Insights, said that a copper tariff would likely be short-lived because higher inflation caused by border taxes will collide with the reality of the U.S. political calendar - where midterm elections will be held in November 2026. "Most Americans don't really give a damn about foreign policy," Leyland. "Inflation is the only concern that people really have."
