SINGAPORE. — Copper prices on the London Metal Exchange and the Shanghai Futures Exchange were rangebound on Monday as investors assessed the impact of trade talks between the US and its major partners and a 50 percent import tariff on the metal.
Three-month copper on the LME inched up 0.07 percent to $9,667.5 per metric ton by 0104 GMT, while the most-traded copper contract on the SHFE SCFcv1 fell 0.37 percent to 78,240 yuan ($10,915.03).
US President Donald Trump said on Saturday he would impose a 30 percent tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries and leaving them less than three weeks to hammer out framework deals that could lower the threatened tariff rate.
This follows a 50 percent tariff imposed on copper imports, which will also be effective on August 1.
“It’s uncertain where copper demand will go with all these tariffs. The US has imported quite a lot of copper before the tariff announcement, so we’re wondering whether China, as the largest consumer and producer, will stock up some too, as it is crucial to the military and economy,” a Shanghai-based metals analyst at a futures company said.
Copper inventories in SHFE-monitered warehouses remained low, down 4 percent on-week at 81,462 tons as of July 11.
Meanwhile, China will release trade data for June and for January-June on Monday, which will probably be positive news with the frontloading amid tariff uncertainties, a Beijing-based metals analyst at a futures company said.
LME nickel shed 0.55 percent to $15,115 a ton, aluminum fell 0.54 percent to $2,589, and tin eased 0.29 percent to $33,550.
