METALS-LME copper hits 3-week low as US tariff risks weigh

Others
(Updates prices with market turning lower) Jan 29 (Reuters) - London copper hit a three-week low on Wednesday as U.S. President Donald Trump's threat to levy tariffs on copper imports kept the market under pressure. Benchmark copper CMCU3 on the London Metal Exchange (LME) eased 0.1% to $8,978.5 a metric ton, as of 0708 GMT, its lowest level since Jan. 8. The lack of clarity around U.S. trade tariffs is creating uncertainty about demand for industrial metals, so that's a key headwind for the year, said Soni Kumari, a commodity strategist at ANZ. Tariff concerns have resurfaced after Trump said on Monday he would impose tariffs on aluminium and copper - metals needed to produce U.S. military hardware - as well as steel, to entice producers to make them in the United States. The United States imports 38% of its copper needs and is highly dependent on aluminium imports, with supplies from other countries such as Canada and Mexico covering 82% of its annual consumption, according to BNP Paribas. The White House said on Tuesday that Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China. Looking ahead, attention will be on clear indications from the United States about tariffs, as well as what steps China will take in its National People's Congress meeting in March, Kumari said. China is the top metals consumer but its economic growth has been lagging despite recent stimulus measures, particularly due to a prolonged property sector crisis. Meanwhile, the Federal Reserve will conclude its two-day policy meeting later in the day, where it is expected to hold interest rates steady. FEDWATCH Three-month aluminium CMAL3 was down 0.3% at $2,565. Zinc CMZN3 fell 0.6% to $2,758.5 a ton and nickel CMNI3 shed 0.2% to $15,405, while lead CMPB3 rose 0.2% to $1,939 and tin CMSN3 was up 0.8% at $29,900. The Shanghai Futures Exchange will be closed until Feb. 4 for the Lunar New Year holiday. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Subhranshu Sahu) ((anushree.ashishMukherjee@thomsonreuters.com;)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))
Details
Published Date
29 Jan 2025 at 12:50 PM
Publisher
Refinitiv
Share

Related News

Discover other related news