Latest news with #LondonMetalExchange
Business Recorder
2 hours ago
- Business
- Business Recorder
Copper falls as China's factory activity misses expectations
LONDON: Copper prices fell on Tuesday as factory activity in top metals consumer China missed expectations, indicating that US tariffs were affecting the manufacturing superpower while trade tensions between Washington and Beijing drag on. Benchmark three-month copper on the London Metal Exchange lost 0.3% to $9,588 per metric ton in official open-outcry trading. The most active US Comex copper futures fell 1.5% to $4.786 a pound, reducing the premium against the LME benchmark to $940 a ton from Monday's $1,074. The Comex futures hit $4.9495, the highest since April 3, on Monday on concerns that US President Donald Trump's plan to double tariffs on steel and aluminium imports to 50% from Wednesday would mean that new US copper tariffs, subject to an ongoing investigation in Washington, were more likely. 'We are seeing a general decline following yesterday's run-up, with traders questioning the sustainability of these levels after another dose of weak China data overnight,' said Ole Hansen, head of commodity strategy at Saxo Bank. China's factory activity shrank for the first time in eight months - the Caixin/S&P Global manufacturing PMI fell to 48.3 in May, the lowest reading in 32 months, a private-sector survey showed. On Saturday, China's official PMI showed May factory activity fell for a second month. With the US manufacturing also contracting in May, for a third straight month, traders were waiting for a possible call between Trump and Chinese leader Xi Jinping. According to the White House, they were likely to speak this week. Providing support to the LME copper were the 21-day moving average, currently at $9,527, and continuing outflows from the stocks in the LME-registered warehouses. LME's daily data showed the inventory fell to 143,850 tons, the lowest in almost a year, after 4,600 were delivered out. The spread between the cash and the three-month copper contract was last at a premium of $49 a ton, indicating concerns about nearby supply in the LME system, partly related to Ivanhoe Mines' Kakula mine in the Democratic Republic of Congo. Among other LME metals, aluminium fell 0.8% to $2,447 a ton in official activity, zinc slipped 0.5% to $2,684, lead dipped 0.4% to $1,973, nickel shed 1.0% to $15,375, while tin rose 1.8% to $31,250.
New Straits Times
20 hours ago
- Business
- New Straits Times
London copper prices little changed, tariff concerns resurface
SINGAPORE: London copper prices held steady as investors weighed a weaker US currency and renewed concerns over the possible tariffs on the metal against support from declining inventories. Three-month copper on the London Metal Exchange shed 0.29 per cent to US$9,589 per tonne as of 0105 GMT. The dollar index, which measures the US currency against six major peers, fell to the lowest since late April. A softer dollar makes greenback-denominated assets more affordable to holders of other currencies. Meanwhile, on Friday, US President Donald Trump announced his plans to double the import tariffs on aluminum and steel to 50 per cent effective Wednesday, renewing concerns about potential copper tariffs. "US trade officials are currently reviewing the impact of US copper imports on the local industry, with a report due in the next few weeks," ANZ Research said. "Copper is also finding support from improving fundamentals." On Monday, copper stocks in the LME-registered warehouses dropped 45 per cent since mid-February to 148,450 tonnes, the lowest in almost a year. Among the other London metals, LME aluminium fell 0.36 per cent to US$2,457 a tonne, zinc slipped 0.43 per cent to US$2,686.5, lead dipped 0.63 per cent to US$1,968.5 and nickel shed 0.75 per cent to US$15,420. Tin added 0.2 per cent to US$30,770. The most-traded copper contract on the Shanghai Futures Exchange (SHFE) gained 0.51 per cent to 78,150 yuan (US$10,855.52) per tonne. SHFE aluminium held flat at 20,085 yuan a tonne, lead gained 0.1 per cent to 16,635 yuan, nickel rose 0.47 per cent to 121,650 yuan, zinc advanced 0.63 per cent to 22,425 yuan, while tin fell 0.55 per cent to 251,520 yuan.
Yahoo
a day ago
- Business
- Yahoo
Aluminium premium for US buyers soars after Trump doubles tariffs
By Polina Devitt LONDON (Reuters) -Premiums for consumers buying aluminium on the physical market in the United States soared on Monday after U.S. President Donald Trump said he planned to increase tariffs on imported steel and aluminium to 50% from 25%. The U.S. is heavily reliant on aluminium imports. About half of all aluminium used in the country for transport, packaging and construction is delivered from elsewhere, with the vast majority coming from Canada. The new tariffs are due to take effect on June 4. Buyers on the physical market usually pay the London Metal Exchange (LME) benchmark aluminium price plus a premium covering taxes, transport and handling costs. The U.S. Midwest duty-paid aluminium premium reached $0.58 per lb, or $1,279 a metric ton, on Monday. That was a 54% jump from Friday and 164% growth since the start of 2025. Part of Monday's growth was amplified by June 2 being the first trading day of the new month, when regional premiums often make a strong move. Goldman Sachs said the premium would need to rise to between $0.68 and $0.70 per lb to fully reflect the 50% import tariff. LME benchmark aluminium was last up 0.4% at $2,453.5 a ton. The higher premium could weigh on U.S. spot market purchases if consumers wait to see if there is a reversal or any exemptions, Morgan Stanley said in a note. Aluminium production depends heavily on the competitively priced and secure power supply source. It has been forty-five years since anyone built a primary aluminium smelter in the U.S. Emirates Global Aluminium said in May it would invest $4 billion in construction of an aluminium plant in the U.S. with first metal expected by the end of the decade. The plant would have an annual production capacity of 600,000 metric tons. For comparison, the U.S. imported 2.7 million tons of unwrought aluminium from Canada last year, according to the Trade Data Monitor. Steel and aluminium tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the U.S. went into effect in March. The 25% tariff prompted some producers to divert aluminium to Europe, leading to a 45%-fall in the European aluminium premium since the start of 2025 and inflating an outflow of aluminium scrap from the EU to the U.S.
Business Recorder
2 days ago
- Business
- Business Recorder
US copper futures surge as tariff fears loom
U.S. copper futures surged nearly 6% on Monday, widening their premium over London prices amid rising speculation about possible new import tariffs following President Donald Trump's latest aluminium trade measures. Trump said on Friday he planned to increase tariffs on imported steel and aluminium to 50% from 25%. U.S. Comex copper futures gained 5.7% to $4.9175 a pound, the highest since April 3. Benchmark three-month copper on the London Metal Exchange (LME) rose 1.1% to $9,597.50 per metric ton by 0944 GMT. The premium on COMEX copper over the LME price, a global benchmark, widened to $1,231 per ton from $759 on Friday. 'Although copper wasn't even mentioned in Trump's latest announcement, markets are clearly pricing in the risk of import tariffs following the February investigation – highlighting strong investor demand for the metal,' said Panmure Liberum analyst Tom Price. In February, Trump ordered a probe into possible new tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, and semiconductors. Copper on track for biggest monthly rise since September LME aluminium steadied at $2,443.50 a ton, after earlier touching its lowest level since May 12 at $2,425.50. The U.S. Midwest aluminium premium jumped 54% from Friday to $0.58/lb or $1,279 a ton. Goldman Sachs in a note said that if the higher metals tariffs come into and remain in effect, the U.S. Midwest aluminium premium would rise to around $0.68-0.70/lb. Lead rose 0.9% to $1,975, zinc gained 1.7% to $2,663.50, tin edged 0.8% higher to $30,600 and nickel was up 0.9% at $15,365. Providing support to the industrial metals was a softer U.S. dollar, making metals more affordable for holders of other currencies. The Dragon Boat Festival holiday in China kept Asian participation muted on Monday, said Neil Welsh, head of metals trading at Britannia Global Markets.
Business Recorder
3 days ago
- Business
- Business Recorder
Copper on track for biggest monthly rise since September
LONDON: Copper prices fell on Friday under pressure from a stronger dollar, but remained on course for their biggest monthly rise in eight months due to tighter nearby supply, highlighted by the premium for nearby copper contracts against those further out. Benchmark three-month copper on the London Metal Exchange (LME) lost 0.6% to $9,510 a metric ton by 1602 GMT. The contract is up 4.2% so far in May, on track for its strongest month since September. The price advance is supported by declining stocks in LME-registered warehouses, down 45% since mid-February to 149,875 tons, the lowest in almost a year. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 7.2% this week. As Washington continues an investigation into whether to impose new US copper import tariffs, the premium of COMEX copper against the LME benchmark remains elevated, attracting more metal into COMEX-owned warehouses. 'The LME copper is facing a bit of a squeeze because the COMEX stocks keep going up and the LME stocks are declining,' said Dan Smith, managing director at Commodity Market Analytics. The spread between the cash LME and the three-month copper contract closed on Thursday at a premium of $51.6 a ton, highest since November 2022, indicating worries about nearby supply, partly due to a large holding of copper warrants and cash contracts.
