Copper prices were mixed on Friday as markets adjusted to a U.S. decision to exempt refined copper from a proposed 50% tariff.

Three-month copper on the London Metal Exchange edged up 0.16% to $9,626.5 per metric ton by 0217 GMT, but was poised to end the week down 1.46%.

The most-traded copper contract on the Shanghai Futures Exchange dipped 0.32% to 78,190 yuan ($10,847.97) a ton and was set to end the week down 1.12%.

The copper market is still adjusting after U.S. President Donald Trump said refined copper would not be subject to the 50% tariff, which has almost completely eliminated the COMEX premium over the LME, analysts from ANZ said in a note.

“There is a real risk that some copper sitting in COMEX warehouses will be re-exported to international markets, putting downward pressure on copper prices.”

Copper trading on COMEX was suspended on Wednesday after prices dropped more than 20% in an hour.

If LME copper continues to trade at a healthy premium over COMEX, it could encourage further increases in copper stockpiles, which have already surged by about 50% in July.

On the supply side, copper output in top producer Chile fell 6% year-on-year in June, while demand concerns lingered as China’s manufacturing activity contracted in July.

New export orders in China declined for a fourth consecutive month, while falling production led factories to cut jobs during the period.

Among other London metals, aluminium gained 0.14% to $2,568.5 a ton, nickel lost 0.27% to $14,895, lead declined 0.33% to $1,964, tin eased 0.14% to $32,665, and zinc remained flat at $2,760.5.

SHFE aluminium lost 0.46% to 20,475 yuan, nickel fell 0.67% to 119,670 yuan, lead decreased 1.1% to 16,625 yuan, tin dipped 0.72% to 264,250 yuan, and zinc eased 0.38% to 22,355 yuan.

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Source: Reuters