Copper prices traded in a narrow range on Monday, as investors cautiously evaluated the implications of new U.S. tariff threats and ongoing trade negotiations with key global partners.
On the London Metal Exchange (LME), three-month copper edged up 0.07% to $9,667.5 per metric ton, while on the Shanghai Futures Exchange (SHFE), the most-traded copper contract slipped 0.37% to 78,240 yuan ($10,915.03) per ton.
The movement follows U.S. President Donald Trump’s latest announcement of a 30% import tariff on goods from the EU and Mexico, set to take effect from August 1, on top of an already announced 50% copper tariff. These aggressive measures have rattled the commodities market, leaving major exporters with less than three weeks to negotiate.
A Shanghai-based analyst said, “It’s uncertain where copper demand will head with all these tariffs. The U.S. pre-stocked large quantities before the announcement, and now the question is whether China—being the world’s largest consumer and producer—will ramp up stockpiling due to copper’s strategic role in both the economy and defense.”
Copper inventory levels at SHFE-monitored warehouses remain tight, down 4% week-on-week to 81,462 tons as of July 11, adding further support to prices. Analysts suggest that upcoming Chinese trade data, due later today, may provide a positive outlook as businesses frontload shipments in anticipation of tariff hikes.
Despite copper’s relative stability, other base metals saw losses:
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LME nickel dropped 0.55% to $15,115 a ton
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Aluminium fell 0.54% to $2,589
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Tin eased 0.29% to $33,550
On the SHFE:
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Aluminium fell 1.16% to 20,475 yuan
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Zinc slipped 0.89% to 22,220 yuan
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Nickel dropped 0.78% to 120,240 yuan
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Lead eased 0.44% to 17,030 yuan
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Tin was down 0.43% at 264,500 yuan
With global supply chains facing heightened uncertainty and tariff measures compressing margins, investors remain on edge. Market direction will depend heavily on Chinese trade performance, inventory trends, and whether diplomatic progress can de-escalate tensions before August.
