Copper falls after report of White House hesitancy over tariff plan
Copper prices saw a notable decline following reports of no movements regarding potential tariffs. The White House is currently evaluating worries about rising manufacturing expenses, which contributed to the drop. On the London Metal Exchange, th...
By Reuters | Updated:
Agencies
Copper prices fell on Thursday after Reuters reported the White House has yet to decide on refined copper tariffs as officials assess concerns that higher prices could raise manufacturing costs.
Three-month copper on the London Metal Exchange fell 3.1% to $14,312 a metric ton by 1039 GMT after touching a record high of $14,875 earlier in the session.
For live updates on US Markets, click here
COMEX October copper futures slid 4.2% to $6.5355 per lb, or $14,408 per ton, reducing the premium over the LME prices.
The U.S. administration under President Donald Trump is under pressure ahead of mid-term elections in November to demonstrate that its policies are lowering costs for American consumers and businesses.
"That update most certainly sent the cat in among the pigeons," said Ole Hansen, head of commodity strategy at Saxo Bank, referring to Reuters' report.
Copper, widely used in power and construction, has gained 16% this year as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, stoking concerns over availability in traditional consuming regions.
Copper stocks in the COMEX warehouses have reached a record high of 696,259 tons after months of inflows.
"Whether these inventories ultimately become stranded, or eventually return to the global market if no tariffs are introduced, may help determine whether current price levels are sustainable," Hansen said.
After the Reuters' report was published on Thursday, the premium of the LME cash contract over the three-month benchmark sank to a discount for the first time since late July. The discount was last at $13.5 a ton, indicating reduced concerns about a shortage of near-term supplies.
Among other LME metals, aluminium fell 1.5% to $3,308 a ton, zinc slid 2.2% to $3,962.50, lead eased 0.4% to $1,907, tin lost 0.2% to $54,845 and nickel was down 0.9% at $16,740.
Three-month copper on the London Metal Exchange fell 3.1% to $14,312 a metric ton by 1039 GMT after touching a record high of $14,875 earlier in the session.
For live updates on US Markets, click here
COMEX October copper futures slid 4.2% to $6.5355 per lb, or $14,408 per ton, reducing the premium over the LME prices.
The U.S. administration under President Donald Trump is under pressure ahead of mid-term elections in November to demonstrate that its policies are lowering costs for American consumers and businesses.
"That update most certainly sent the cat in among the pigeons," said Ole Hansen, head of commodity strategy at Saxo Bank, referring to Reuters' report.
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Copper, widely used in power and construction, has gained 16% this year as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, stoking concerns over availability in traditional consuming regions.
Copper stocks in the COMEX warehouses have reached a record high of 696,259 tons after months of inflows.
"Whether these inventories ultimately become stranded, or eventually return to the global market if no tariffs are introduced, may help determine whether current price levels are sustainable," Hansen said.
After the Reuters' report was published on Thursday, the premium of the LME cash contract over the three-month benchmark sank to a discount for the first time since late July. The discount was last at $13.5 a ton, indicating reduced concerns about a shortage of near-term supplies.
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Among other LME metals, aluminium fell 1.5% to $3,308 a ton, zinc slid 2.2% to $3,962.50, lead eased 0.4% to $1,907, tin lost 0.2% to $54,845 and nickel was down 0.9% at $16,740.
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