Copper prices ease on trade tariff uncertainty, Chile supply outlook
Three-month copper on the LME was down 0.2 per cent at US$9,810 per metric ton, as of 0109 GMT, and the most-traded copper contract on the SHFE eased 0.16 per cent to 79,380 yuan (US$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 per cent to 40 per cent, set to take effect on August 1. Additionally, US President Donald Trump warned that an extra 10 per cent 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 US$4.67 billion worth of copper in June, marking an increase of 17.5 per cent 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 per cent since mid-February.
LME nickel edged 0.18 per cent lower to US$15,150 a ton, while zinc gained 0.24 per cent to US$2,691, tin inched up 0.12 per cent to US$33,325, and aluminium up 0.1 per cent at US$2,576.
SHFE zinc lost 0.68 per cent to 22,035 yuan a ton, lead fell 0.55 per cent to 17,115 yuan, nickel went down 0.53 per cent to 120,540 yuan, and tin dropped 0.5 per cent to 264,360 yuan.
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