Copper prices slipped on Wednesday as concern eased about supply disruptions and inventories continued rising amid uncertainty about the impact of U.S. tariffs.

Benchmark three-month copper on the London Metal Exchange HG1! traded 0.3% lower at $9,615 per metric ton in official rings, down from a three-month peak just over $10,000 touched on July 2.

“There hasn’t been any additional supply disruptions to push prices higher across the various exchanges,” said Nitesh Shah, commodity strategist at WisdomTree.

Protesters have lifted blockades in Peru, the world’s third biggest copper producer, that blocked a major copper transit route for more than two weeks, one of the protest leaders told Reuters late on Tuesday.

Meanwhile, Rio Tinto RIO on Wednesday posted 9% higher quarterly copper output and forecast full-year production at the higher end of its guidance range, while Antofagasta ANTO reported an 11% jump in copper production in the first half.

At the same time, a flow of copper to the U.S. by traders anticipating tariffs has tapered off following the announcement that 50% duties would be imposed on August 1.

“The inventory drain from the LME and Shanghai has plateaued and almost reversed. You’re starting to see a build-up in both locations,” Shah added.

LME copper stocks gained by another 10,525 tons, data showed on Wednesday, having jumped by a third over the past 2-1/2 weeks.

U.S. Comex copper futures (HGc3) dropped 0.9% to $5.53 a lb, bringing the premium of Comex over LME copper to $2,579 a ton.

Investors were also digesting data on Tuesday showing China’s economy slowed less than expected in the second quarter.

“The GDP print, hitting slightly above target, takes away the need for additional stimulus, and that may potentially constrain copper prices,” Shah said.

The most-traded copper contract on the Shanghai Futures Exchange added 0.1% to 77,980 yuan ($10,865.11) a ton.

Among other metals, LME aluminium fell 0.6% to $2,566 a ton, nickel lost 1% to $14,995, zinc shed 0.4% to $2,686, lead eased 0.7% to $1,982.50 and tin slipped 1.5% to $32,825.
Source: Reuters