Copper prices on the London Metal Exchange and the Shanghai Futures Exchange were rangebound on Monday as investors assessed the impact of trade talks between the U.S. and its major partners and a 50% import tariff on the metal.

Three-month copper on the LME inched up 0.14% to $9,674 per metric ton by 0702 GMT, while the most-traded copper contract on the SHFE fell 0.17% to 78,400 yuan ($10,935.67).

U.S. President Donald Trump said on Saturday he would impose a 30% tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries and leaving them less than three weeks to hammer out framework deals that could lower the threatened tariff rate.

This follows a 50% tariff imposed on copper imports, also to be effective on August 1.

“It’s uncertain where copper demand will go with all these tariffs. The U.S. has imported quite a lot of copper before the tariff announcement, so we’re wondering whether China, as the largest consumer and producer, will stock up some too, as it is crucial to the military and economy,” a Shanghai-based metals analyst at a futures company said.

Copper inventories in SHFE-monitored warehouses (CU-STX-SGH) remained low, down 4% on-week at 81,462 tons as of July 11.

Meanwhile, SHFE aluminium fell 1.45% to 20,415 yuan a ton, and LME aluminium fell 0.69% to $2,585.

“China’s lower unwrought aluminium and products exports in June was kind of expected with the U.S. doubling aluminium import tariffs to 50% in early June, and summer is a low consumption season in China,” the Shanghai analyst said.

In June, China’s unwrought aluminium and products exports fell 19.84% on the year, and the January-June volume was down 8%.

LME lead fell 0.45% to $2,012.5 per ton, zinc eased 0.13% to $2,735, while tin gained 0.15% to $33,700, and nickel was up 0.08% to $15,210.

SHFE tin gained 0.41% at 266,720 yuan a ton, while zinc slipped 0.67% to 22,250 yuan, and lead was down 0.12% to 17,085 yuan.
Source: Reuters