LONDON: Copper prices slipped on Thursday after touching a five-month peak as worries about global growth overshadowed the impact of US tariffs inflating metals prices.
Three-month copper on the London Metal Exchange (LME) dropped 0.4% to $9,732 a metric ton in official open-outcry trading after hitting the highest since October 11 at $9,811.
US Comex copper futures fell 0.5% to $4.83 a lb. Traders have been bidding up metals prices impacted by US President Donald Trump’s campaign to slap tariffs on other countries in an effort to boost US industry. LME copper has gained 11% so far in 2025.
US tariffs of 25% on steel and aluminium products took effect on Wednesday, while Trump has also ordered a probe into possible new tariffs on copper. “Prices have been going up, but for the wrong reason. It’s not because demand is doing well, it’s because there’s still an ongoing adjustment across the metal markets for tariffs,” said Tom Price, head of commodities strategy at Panmure Liberum. “People who actually buy copper, aluminium and steel, they have no choice in the short term but to pay up for it, but then over time they start to reduce the amount they use or just defer consumption,” he added.
“There’s a lot of confusion in the market trying to work out what sort of risk they’re managing.” Global share markets fell on Thursday on disquiet that an escalating trade war will curb global growth after Trump threatened to slap further tariffs on European Union goods.
LME zinc bucked the weaker trend, rising 0.3% to $2,931 a ton after hitting a seven-week high on Wednesday in the wake of Nyrstar announcing 25% production cuts at its Hobart zinc operations in Australia from April.
Among other metals, LME aluminium lost 1% to $2,675.50 a ton, nickel eased 1.2% to $16,450, lead fell 0.6% to $2,070, while tin edged up 0.2% to $33,495.
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