Copper prices rangebound as markets digest US tariff news, await clarity

Refinitiv閱讀2分鐘

Copper prices on the London Metal Exchange and the Shanghai Futures Exchange were rangebound on Friday, easing from an initial shock of the U.S. announcement of a 50% import tariff effective August 1, as the market awaited further details.

Three-month copper on the LME HG1! was down 0.18% at $9,683.5 per metric ton, as of 0101 GMT. The contract has lost 1.73% so far this week, and was poised for a second weekly decline.

The most-traded copper contract on the Shanghai Futures Exchange HG1! edged 0.18% higher to 78,530 yuan ($10,943.12), but was on track to end the week down 1.97%.

U.S. President Donald Trump announced on Wednesday a 50% copper tariff to start on August 1 to boost domestic development of a key industry for defense, electronics, and automobiles.

"Uncertainties and unknown have remained, such as what copper products to be included, whether the 50% will be final or it could be adjusted, or whether there will be an extension of the implementation date," a Beijing-based metals analyst from a futures company said, requesting anonymity.

In the previous session, the COMEX premium over the LME was at $2,615 a ton, or 27%, down from a peak touched on Tuesday, as traders shipped roughly about a year's worth of copper imports to the United States so far this year.

With so much copper already shipped to the U.S., a full 50% increase in the COMEX-LME premium may not be realistic, but a 40% rise is likely if the tariff is implemented as announced, the analyst said.

LME lead LEAD1! fell 0.54% to $2,033 a ton on Friday and nickel NICKEL1! dipped 0.2% to $15,260.

SHFE nickel NICKEL1! gained 1.03% to 121,140 yuan a ton, zinc ZNC1! was up 0.58% at 22,415 yuan, aluminium ALI1! rose 0.27% at 20,725 yuan, tin FTIN1! adavnced 0.16% to 265,430 yuan, while lead LEAD1! eased 0.73% to 17,090 yuan.