Copper prices dipped slightly in both London and Shanghai on Thursday as traders remained cautious ahead of the United States’ impending 50% import tariff on the metal, part of a broader set of trade levies set to take effect on August 1.
On the London Metal Exchange (LME), three-month copper edged down 0.07% to $9,628 per metric ton as of 0123 GMT. Meanwhile, the most-traded copper contract on the Shanghai Futures Exchange (SHFE) eased 0.04% to 77,930 yuan ($10,855.12) per ton.
Analysts at ANZ noted that the U.S. market is likely to rely on existing stockpiles in the near term due to the steep tariff announced by President Donald Trump, which could exert downward pressure on both COMEX and LME copper prices.
In an interview aired Wednesday, Trump said the U.S. is nearing a trade deal with India and possibly Europe, but an agreement with Canada remains uncertain. These remarks come amid broader global trade tensions that are impacting metals markets.
Adding to bearish sentiment, copper inventories at LME-registered warehouses rose sharply by 10,525 tons to reach 121,000 tons. Notably, the LME’s newly operational warehouses in Hong Kong received 5,975 tons of copper along with smaller shipments of nickel, zinc, and tin. The move is part of LME’s strategic expansion to reinforce its presence in Hong Kong, seen as a gateway to China — the world’s largest consumer of industrial metals.
Copper Prices Hold Steady as China GDP Meets Forecast, Markets Eye US Inflation Data
In other metals:
-
LME Tin rose 0.67% to $33,020 per ton
-
LME Zinc dipped 0.35% to $2,701.5
-
LME Lead slipped 0.13% to $1,974
-
LME Aluminium edged down 0.12% to $2,574.5
In China:
-
SHFE Nickel fell 0.8% to 119,640 yuan
-
SHFE Tin dropped 0.32% to 262,640 yuan
-
SHFE Lead decreased 0.27% to 16,850 yuan
-
SHFE Zinc gained 0.32% to 22,085 yuan
-
SHFE Aluminium rose 0.1% to 20,450 yuan
As the August 1 tariff deadline approaches, metal markets may remain under pressure, with inventory levels and trade policy continuing to steer investor sentiment.