LONDON: Copper prices in London fell to their lowest in three weeks on Wednesday as U.S. President Donald Trump’s tariff plans continue to crimp the global demand outlook.
Benchmark copper on the London Metal Exchange (LME) was steady at $8,989.50 a metric ton by 1017 GMT after hitting $8,957 for its lowest since Jan. 8.
Trump has said he would announce 25% tariffs on Mexico and Canada on Feb. 1 unless the countries help to tackle the twin issues of U.S. fentanyl trafficking and immigration. On Monday he said he would impose tariffs on aluminium, copper and steel.
“There is currently a lot of uncertainty regarding tariffs in the U.S. and potential retaliatory actions, particularly in China, and the market is highly reactive at the moment,” said Alice Fox, global metals strategist at Macquarie.
“The introduction of tariffs could negatively impact global growth and therefore copper demand, but we continue to monitor the situation as it unfolds.”
Copper retreats as China sells ahead of Lunar holiday
The main markets in top metals consumer China are closed for the Lunar New Year holiday until Feb. 5.
Adding further pressure on base metals, the dollar strengthened ahead of the U.S. Federal Reserve’s next policy decision, with investors looking for hints on how much interest rates might fall this year.
A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.
In other metals, LME aluminium added 0.7% to $2,589 a ton, lead rose 0.8% to $1,951.50, tin was up 0.4% at $29,765 while zinc lost 0.3% to $2,765 and nickel eased by 0.1% to $15,415.
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