Latest news with #LondonMetalsExchange
New Straits Times
31-07-2025
- Business
- New Straits Times
Trump's watered-down copper tariffs almost crush Comex premium
BEIJING/LONDON: Benchmark copper prices on the London Metals Exchange rose at the open on Thursday as markets continued to claw back the once-mighty US copper price premium in response to the scaled-down US copper tariffs imposed by President Donald Trump. Trump said on Wednesday the United States would impose a 50 per cent tariff on copper pipes and wiring, but the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. The surprise move dragged down US copper prices more than 18 per cent on the Comex exchange and unwound a large part of the premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices. "We think the LME flips to a premium in the short term due to excess inventories in the US," Anant Jatia, founder and chief investment officer at Greenland Investment Management, a hedge fund specialising in commodity arbitrage trading, told Reuters. "Over time Comex moves back to a premium as inventories draw and downstream tariffs leave a sustained US premium." Benchmark LME copper gained 0.9 per cent to US$9,785 a tonne after markets opened on Thursday. US September Comex copper futures briefly hit US$4.5095 a pound (lb) or US$9,941.6 per tonne, down 19 per cent, shortly after the LME opened before moving back up to hover around 4.5635 a lb or 10,061 a tonne. At the low, the premium over the London benchmark had fallen to just US$157 a tonne from recent levels above US$3,000 a tonne. That premium has sucked in enormous volumes of copper from around the world this year. As recently as a few weeks ago, traders were still redirecting cargoes to the United States in a rush to get copper into the country before the tariffs. "What's a fair price for US copper? At US$4.5/lb, it's already returned to this market's pre-tariff levels. That seems fair to me," said Panmure Liberum analyst Tom Price. Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products. Yet in a proclamation released by the White House, the administration said the tariff will apply starting this Friday only to pipes, tubes and other semi-finished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components.
Business Recorder
22-07-2025
- Business
- Business Recorder
Shanghai aluminium hits nearly 9-month high on prospect of better China demand
SINGAPORE: The most-traded aluminium contract on the Shanghai Futures Exchange on Tuesday hit the highest since November on possibly better demand for metals from China as authorities vow to stabilise industrial growth, including metals. SHFE aluminium rose 0.75% to 20,900 yuan ($2,913.26) a ton by 0702 GMT, or the highest since November 12. 'Aluminium fundamentals are the most solid among metals in China, especially being the only metal with a smelting capacity capped at 45 million tons, and alumina price surge has also been supportive,' a Shanghai-based metals analyst at a futures company said. SHFE alumina gained 4.23% to 3,452 yuan a ton, or the highest since Feb 26, and aluminium stocks at the SHFE-monitored warehouses totalled 108,822 tons by July 18, or the lowest since February 2024 albeit three consecutive weeks of rebounds. 'The Chinese government's working plans to stabilize industrial growth and the launch of the giant Tibet hydropower plant are all positive signals to the metals market, with the prospect of the country's metals demand boosting the sentiment,' a Beijing-based futures analyst at a futures company said. However, it's unclear how much actual demand will materialise, the analyst added. A Shanghai analyst echoed the view, saying, 'Amid all the uncertainties, such news sounds definite and positive, which may support the commodities futures market for a while.' On July 19, China began building the world's largest hydropower dam on the eastern rim of the Tibetan Plateau at an estimated cost of at least $170 billion. Meanwhile, SHFE nickel gained 1.51% to 123,530 yuan a ton, tin rose 1.11% to 268,520 yuan, zinc grew 0.7% to 22,945 yuan, being the highest since April 2, copper added 0.61% to 79,740 yuan, while lead ticked down 0.21% to 16,900 yuan. On the London Metals Exchange, the three-month zinc gained 0.14% to $2,842.5 a ton, tin inched up 0.1% to $33,845, and copper added 0.07% to $9,866.5, while lead ebbed 0.55% to $2,003.5, nickel fell 0.18% to $15,495, and aliuminium traded flat at $2,645.5.
Zawya
27-03-2025
- Business
- Zawya
London copper edges higher; subdued dollar lends support
Copper prices in London edged up on Thursday, with markets tracking inflows of the industrial metal to the U.S. as demand rose ahead of potential tariffs, and a downward move in the dollar index further lent support. The benchmark three-month copper on the London Metals Exchange (LME) added 0.1% to $9,941 a metric ton as of 0707 GMT. In the last session, prices hit $10,164.5 a ton, the highest since June 7. Traders have been bidding up copper prices after U.S. President Donald Trump ordered a probe into potential tariffs on copper imports to rebuild U.S. production of the metal. "Trump's announcement has led to frontloading and (the) market is trying to price in tariffs; there have been (a) lot of inflows in the U.S. market," said ANZ Commodity Strategist Soni Kumari. "Once there is clarity around tariffs, this will subside as demand from (the) U.S. will soften and that will weigh on prices." Citi Research forecast that a 25% U.S. copper import tariff would be imposed in the second quarter of this year and lowered its three-month price outlook to $9,500 per ton, down from $10,000, the brokerage said in a note. On Wednesday, Trump unveiled a 25% tariff on imported cars and light trucks starting next week, widening the global trade war. The dollar index, which measures the U.S. currency against six rivals, drifted lower. A softer dollar makes greenback-priced commodities cheaper for buyers using other currencies. Among other metals, LME aluminium added 0.3% to $2,613.5 a ton, lead fell 0.6% to $2,078.5, zinc dipped 0.4% to $2,945, tin advanced 0.4% to $35,195 and nickel eased 0.3% to $16,190 a ton. SHFE copper slid 1.03% to 81,560 yuan ($11,229.21) a ton, SHFE aluminium gained 0.6% to 20,815 yuan a ton, zinc dropped 0.3% to 24,105 yuan, lead advanced 0.2% to 17,615 yuan, nickel was down 0.05% to 130,030 yuan and tin rose 0.8% to 281,010 yuan. ($1 = 7.2632 Chinese yuan) (Reporting by Neha Arora; Editing by Sumana Nandy, Janane Venkatraman and Rashmi Aich)
Zawya
25-03-2025
- Business
- Zawya
London copper edges up, firmer dollar checks gains
Copper prices in London edged up on Tuesday as markets tracked the metal's movement to the U.S. amid potential tariff concerns, while a stronger dollar checked gains. The benchmark three-month copper on the London Metals Exchange (LME) added 0.3% to $9,986 a metric ton as of 0727 GMT. The dollar hit a three-week high against the yen and was firm across the board following strong U.S. services data and cautious optimism on the tariff front. A stronger dollar makes greenback-priced metals more expensive for buyers using other currencies. Last month, U.S. President Donald Trump ordered a probe into potential tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods. Traders said the movement of copper from the LME system to the U.S. can be seen in inventories held by warehouses in the exchange's network around the world. Stocks in LME warehouses have dropped 18% over the past four weeks. Cancelled warrants, or metal earmarked for delivery, are at 50% of the total, suggesting that another 111,000 tons is due to leave LME warehouses. "Markets look set to nervously monitor for any copper tariff developments over the coming weeks as refined metal heads for the U.S.," Benchmark Mineral Intelligence said. "The quarterly China Smelters Purchase Team (CSPT) meeting, which is scheduled to take place next Monday, will be closely watched also, especially in regard to the buying floor for Q2 and any potential coordinated production cutbacks." LME aluminium rose 0.1% to $2,618 a ton, lead gained 0.7% at $2,050.5, zinc added 0.3% to $2,955, tin rose 0.3% to $34,460 and nickel climbed 0.3% to $16,055 a ton. SHFE copper jumped 1.2% to 81,910 yuan ($11,281.59) a ton, SHFE aluminium rose 0.02% to 20,705 yuan a ton, zinc rose 0.3% to 24,125 yuan, lead dropped 0.1% at 17,560 yuan, nickel lost 0.2% to 129,220 yuan and tin slipped 0.5% to 274,870 yuan. ($1 = 7.2605 Chinese yuan)
Zawya
17-03-2025
- Business
- Zawya
Metals rise on dollar weakness, but trade jitters cap gains
Metals were mostly trading higher on the London Metals Exchange on Monday, supported by a weaker dollar, although concerns over U.S. tariffs limited the gains. Benchmark three-month copper on the London Metals Exchange was up 0.3% at $9,810 a metric ton, as of 0750 GMT. The dollar hovered close to a five-month low on Monday, pressured by U.S. President Donald Trump's erratic trade policies. A softer dollar makes greenback-priced commodities more affordable for buyers using other currencies. "In summary, with the US dollar index maintaining a low level, copper prices are expected to find support at the bottom today," information provider Shanghai Metals Market (SMM) said in a note. U.S. President Donald Trump said on Monday he has no intention of creating exemptions on steel and aluminum tariffs and said reciprocal and sectoral tariffs will be imposed on April 2. LME aluminium was up 0.4% to $2,691 a ton, lead gained 0.7% to $2,083.5, zinc lost 0.1% to $2,968.5, tin rose 0.5% to $35,500 and nickel advanced 1.2% to $16,665. SHFE copper gained 0.6% to 80,520 yuan ($11,120.63) a metric ton, SHFE aluminium was down 0.3% at 20,925 yuan a ton, zinc added 0.3% to 24,205 yuan, lead jumped 0.1% to 17,635 yuan, tin gained 0.3% to 283,520 yuan and nickel rose 0.1% to 133,900 yuan. ($1 = 7.2406 Chinese yuan renminbi)
