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Copper prices edge up as tariff uncertainty drags on
Copper prices edge up as tariff uncertainty drags on

Business Recorder

time2 hours ago

  • Business
  • Business Recorder

Copper prices edge up as tariff uncertainty drags on

LONDON: Copper prices rose on Wednesday with uncertainty about US tariff policy keeping the premium of US copper futures against the London benchmark elevated, although small inflows into London Metal Exchange stocks eased accumulated tightness. Three-month copper on the LME added 0.3% at $9,966 a metric ton in official open-outcry trading. The most active US Comex copper futures rose 0.8% to $5.138 a pound, meaning the premium against the LME benchmark was almost 14%. There are expectations the ongoing US investigation into whether to impose new copper import tariffs will take longer while the White House is focused on talks related to 'reciprocal' tariffs. Inside the LME system, LME-registered warehouses in Asia saw inflows of 2,075 tons, daily LME data showed, raising the available inventory to a one-month high of 61,350 tons and driving down the premium for nearby contracts over those with longer maturities. The premium for the LME's cash copper contracts over the three-month forward contract was last at $81 a ton as it continued to unwind from $320, the highest price since November 2021. That level was hit last week on expectations that China's producers would deliver more metal this month. This premium indicates the short-term tightness in the LME system, and more inflows into the warehouses are needed to ease it further as the available LME copper stocks are still down 76% since mid-February after outflows to the US, traders said. The metal, used in the power and construction industries, started the second half of 2025 by testing the key psychological mark of $10,000 for the first time in three months on Tuesday due to strong manufacturing data in top consumer China. Goldman Sachs said in a note that it expects China's 2025 demand for refined copper to rise by 6% and sees upside risks to its August LME copper forecast of $10,050 as the Asian country and the US compete for copper. LME aluminium lost 0.1% to $2,597 a ton as daily LME data showed available stocks rose to 348,000 tons, the highest level since December, after deliveries of 10,000 tons. Zinc and lead rose 0.6% to $2,729 and $2,050, respectively, while tin was steady at $33,650. Nickel gained 0.1% to $15,225.

Copper edges up as stronger yuan offsets tariff uncertainty
Copper edges up as stronger yuan offsets tariff uncertainty

Business Recorder

time13 hours ago

  • Business
  • Business Recorder

Copper edges up as stronger yuan offsets tariff uncertainty

LONDON: Copper prices rose on Wednesday as a stronger yuan currency in top metals consumer China and weak dollar offset uncertainty about global trade tensions. Three-month copper on the London Metal Exchange was up 0.2% at $9,951 a metric ton by 1025 GMT. The metal, used in power and construction, started the second half of 2025 by testing the key psychological mark of $10,000 for the first time in three months on Tuesday as strong manufacturing data in top consumer China improved sentiment. This spike was also due to a persisting premium in U.S. copper futures amid expectations that copper would eventually be subject to the Section 232 import tariffs in the United States, assuming that the ongoing investigation will conclude that imports are threatening U.S. national security, said analyst Carsten Menke at Julius Baer. These expectations have caused a surge in U.S. copper imports this year, tightening the availability of the metal outside the U.S. and prompting the nearby LME copper contracts to trade at a premium over those with longer maturities. Goldman Sachs said in a note that it expects China's 2025 demand for refined copper to rise by 6% and sees upside risks to its August LME copper forecast of $10,050 as China and the U.S. compete for copper. Copper inches up on weaker dollar; investors watch US trade talks In the longer term, Julius Baer expects the global copper market to be sufficiently supplied this year and is concerned about the demand outlook due to pre-buying from U.S. importers. Meanwhile, the U.S. dollar languished near its lowest since February 2022 on Wednesday as traders considered the potential impact of President Donald Trump's spending bill, and looming trade tariff deadlines. The yuan was near an eight-month high against the dollar amid hopes for an easing of U.S.-China trade tensions. LME aluminium fell 0.2% to $2,593.50 a ton, zinc rose 0.4% to $2,725.50, lead climbed 0.4% to $2,046.50, tin lost 0.6% to $33,430 and nickel gained 0.1% to $15,220.

Copper gains as traders likely to continue shipping ahead of possible US tariffs
Copper gains as traders likely to continue shipping ahead of possible US tariffs

Business Recorder

time18 hours ago

  • Business
  • Business Recorder

Copper gains as traders likely to continue shipping ahead of possible US tariffs

SINGAPORE: Copper rose on the London Metal Exchange and Shanghai Futures Exchange on Wednesday, as traders are expected to continue rushing metal shipments to the US ahead of potential import tariffs, further tightening already low inventories elsewhere. The most-traded copper contract on the SHFE gained 0.62% to 80,520 yuan ($11,238.43) per metric ton, as of 0105 GMT, or the highest price range so far in 2025 around the latter half of March, and the three-month copper on the LME inched up 0.12% to $9,945.5. 'Other than expectations of better demand from China with higher PMI in May and the US with better job market, low copper inventories at the SHFE and LME amid the continuing shipment to the US before the imposition of the import tariffs have been supportive to the price,' a Beijing-based metals analyst from a futures company said. Copper hits three-month high on stronger China data Copper stocks in LME-registered warehouses dropped 66% since the middle of February to 91,250 tons, and copper inventories in the warehouses monitored by the SHFE also fell by 66% since early March to 81,550 tons as of last Friday. Copper inventories in China typically rise in the summer months due to low seasonal demand. 'US Treasury Secretary Scott Bessent said that Washington's negotiations with Beijing will focus first on reciprocal tariffs, and only later on duties on copper and other raw materials,' ANZ said. 'A delayed decision on tariffs would justify a premium on US copper, giving traders more time to ship metal before levies take effect.' SHFE aluminium gained 0.61% to 20,685 yuan a ton, tin gained 0.4% to 268,420 yuan, lead inched up 0.2% to 17,170 yuan, nickel grew 0.16% to 120,580 yuan, while zinc fell 0.4% to 22,165 yuan. LME aluminium gained 0.33% to $2,607 a ton, lead gained 0.2% to $2,042, and zinc inched up 0.06% to $2,715.5.

Copper hits 3-month high on stronger China data
Copper hits 3-month high on stronger China data

Business Recorder

timea day ago

  • Business
  • Business Recorder

Copper hits 3-month high on stronger China data

LONDON: Copper prices hit three-month highs on Tuesday as growing optimism about demand in top consumer China because of the country's stronger manufacturing data and a weaker dollar spurred buying, traders said. Benchmark copper on the London Metal Exchange (LME) traded 0.7% higher at $9,945 a metric ton in official rings from an earlier $9,984, the highest since March 27. China's factory activity expanded in June, supported by an increase in new orders that lifted production, after contracting the previous month, a private sector survey showed. A lower US currency makes dollar-priced metals cheaper for holders of other currencies, which could increase demand. This relationship is used by funds which trade using buy and sell signals generated by numerical models. Low inventories were also helping. In LME registered warehouses copper stocks at 91,250 tons have dropped 66% since the middle of February. In warehouses monitored by the Shanghai Futures Exchange (ShFE), copper inventories at 81,550 tons have also fallen 66% since early March. 'Overall availability remains tight across both exchanges, reinforcing strong underlying demand and fuelling backwardation,' analysts Benchmark Mineral Intelligence said in an note. Backwardation refers to the premium for nearby contracts over those with longer maturities. The premium for the LME's cash copper contracts over the three-month forward hit $319 a ton last week, its highest since October 22. It has since slipped to around $120 a ton on expectations of large copper deliveries. LME data shows 1,500 tons were delivered to its warehouses in the South Korean port of Gwangyang on Monday. However, cancelled warrants or metal earmarked for delivery indicate another 31,975 tons are due to leave the LME system. LME stocks have been depleted by the threat of tariffs on US copper imports by President Donald Trump which have pushed up prices on COMEX, creating a premium above LME prices. In other metals, aluminium gained 0.3% to $2,604.5, zinc retreated 0.6% to $2,736.5, lead dipped 0.1% to $2,043, tin rose 0.6% to $33,925 and nickel slipped 0.4% to $15,160.

Copper Rises to Three-Month High on China Manufacturing Rebound
Copper Rises to Three-Month High on China Manufacturing Rebound

Yahoo

timea day ago

  • Business
  • Yahoo

Copper Rises to Three-Month High on China Manufacturing Rebound

(Bloomberg) -- Copper rose to a three-month high, boosted by buying toward the close of trading in China, on signs factory activity is recovering in the world's second-largest economy. Struggling Downtowns Are Looking to Lure New Crowds Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law The three-month contract on the London Metal Exchange climbed as much as 1.3% to $10,000 a ton on Tuesday, aligned with gains seen in the final hour of trading in Shanghai. An improvement in Chinese manufacturing last month suggests the top copper consumer is benefiting from a truce in the trade-war with the US. 'It has been a China bid which has really spurred the moves today,' said Al Munro, an analyst at Marex Group. 'Regardless of any speculation around the state of the macro, the flows and data this desk observes remain positive.' US Treasury Secretary Scott Bessent told Bloomberg TV on Monday that Washington's negotiations with Beijing would focus first on reciprocal tariffs, and only 'later' on duties on copper and other raw materials. A delayed decision on tariffs would justify a premium on US copper, giving traders a longer window to ship the metal to American warehouses before levies take effect. This could further tighten supplies in other markets. For now, though, there are signs that the worst of a supply squeeze in London is over, with key spreads softening on the LME. The so-called Tom/next spread, which is the cost of rolling a short cash position overnight, has eased significantly after surging last week to the highest since 2021. LME copper settled 0.7% higher at 9,934 a ton in London, while nickel and aluminum were little changed. --With assistance from Charlie Zhu and Winnie Zhu. America's Top Consumer-Sentiment Economist Is Worried SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

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