NEW DELHI: London copper prices edged lower on Monday as traders assessed uncertainties surrounding US tariff policies, although a weaker dollar helped limit the downside.
Three-month copper on the London Metal Exchange (LME) was down 0.4% at $9,572 a metric ton, as of 0342 GMT. The most-active copper contract on the Shanghai Futures Exchange fell 0.6% to 78,210 yuan ($10,777.03) a ton.
US President Donald Trump in an interview on Sunday declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.
Trump’s trade policies have fuelled fears of a trade war, which could dampen economic growth and raise prices for Americans still reeling from years of high inflation.
“Dramatic shifts in US trade and foreign policy are likely to cause further disruption to metal markets,” ANZ Research said.
“President Trump has placed a 25% tariff on US aluminium and steel imports. A levy on copper is also on the cards.
The short-term impact will be a rise in premiums as the US struggles to adjust to the dislocation in physical markets.“
The dollar began the day weak after significant losses last week due to a potentially weakening US labour market, while concerns over a global trade war led investors to safe havens, lifting the yen and the Swiss franc.
Copper rallies to one-month peak on signs of improving demand
A softer dollar makes greenback-priced commodities less expensive for buyers holding other currencies.
Among other metals, LME aluminium fell 0.5% to $2,693 a ton, zinc lost 0.6% to $2,869 and nickel eased 0.4% to $16,445. Lead firmed 0.4% to $2,027 and tin eased 0.4% to $32,400.
SHFE aluminium shed 0.02% to 20,880 yuan a ton, zinc lost 1.1% to 23,795 yuan and lead slid 0.09% to 17,460 yuan.
Nickel climbed 1.5% to 132,210 yuan and tin firmed 0.1% to 262,220 yuan.
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