London copper prices on Monday gave up the earlier gains weighed down by concerns over US President Donald Trump’s threat of tariffs on semiconductors, while hopes of China stimulus capped losses.
The benchmark three-month copper on the London Metal Exchange (LME) was up 0.1% at $9,160 a metric ton as of 0404 GMT, after touching its highest in more than a week earlier in the day.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 1.5% to 75,920 yuan ($10,389.61)per ton.
The dollar index fell 0.4% against its rivals.
A softer dollar makes greenback-priced commodities cheaper for buyers using other currencies.
On Sunday, Trump said he would announce tariffs on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.
The president’s pledge meant that the exclusion of smartphones and computers from his reciprocal tariffs on China will likely be short-lived as Trump seeks to reset trade in the semiconductor sector.
“Tariff threats continue to be a focal point for copper,” said BMI, a unit of Fitch Solutions.
“(But) Beijing’s potential response with a massive stimulus is likely to offset some of the losses”. Last week, Chinese Premier Li Qiang said that China needs to implement more proactive macroeconomic policies and roll them out promptly as “external shocks” have pressured China’s economic stabilisation, the state media reported.
Investors are awaiting additional stimulus measures from China to mitigate the impact of Trump’s tariffs.
SHFE aluminium added 0.4% to 19,695 yuan a ton, zinc added 0.5% to 22,465 yuan, lead gained 0.7% to 16,885 yuan, nickel was up 1.5% at 122,760 yuan, tin advanced 2.5% to 260,480 yuan.
LME aluminium gained 0.5% to $2,408.5 a ton, lead rose 0.2% to $1,918, tin was up 2.1% at $31,870, zinc rose 0.4% to $2,661 and nickel rose 0.6% to $15,155 a ton.
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