SINGAPORE (Reuters). — Copper prices eased on the London Metal Exchange and Shanghai Futures Exchange on Tuesday, as uncertainty over US trade tariffs and the potential for increased copper supply from Chile, the world’s largest producer, weighed on the market.
Three-month copper on the LME was down 0.2 percent at $9,810 per metric ton, as of 0109 GMT, and the most-traded copper contract on the SHFE SCFcv1 eased 0.16 percent to 79,380 yuan ($11,064.34) a ton. Still, both contracts were trading at their high levels since April.
The United States sent formal notices to 14 countries on Monday announcing new tariffs ranging from 25 percent to 40 percent, set to take effect on August 1. Additionally, US President Donald Trump warned that an extra 10 percent tariff could be imposed on BRICS nations, including Brazil, Russia, India, and China, if they pursue what he described as “anti-American” policies during their summit in Brazil.
“The market focus is still very much on the US trade tariffs, as all have not been finalized, and higher copper export value from Chile probably suggests a higher supply volume,” said a Beijing-based metals analyst from a futures company.
Chile exported $4.67 billion worth of copper in June, marking an increase of 17.5 percent in the year-ago period.
“Chilean copper mines had their best month of export revenue in over three years in June,” ANZ said.
Copper is still flowing to the US, as Washington’s ongoing investigation into potential new copper import tariffs keeps the premium of COMEX copper futures over the LME benchmark elevated, and the COMEX copper stocks are at a seven-year high, or up 120 percent since mid-February.
LME nickel edged 0.18 percent lower to $15,150 a ton, while zinc gained 0.24 percent to $2,691, tin inched up 0.12 percent to $33,325, and aluminium up 0.1 percent at $2,576.
SHFE zinc lost 0.68 percent to 22,035 yuan a ton, lead fell 0.55 percent to 17,115 yuan, nickel went down 0.53 percent to 120,540 yuan, and tin dropped 0.5 percent to 264,360 yuan.
