Shanghai copper fell on Friday to its lowest since late September as investors focused on escalating tensions over US metal imports. Shanghai Futures Exchange copper ended down 2 percent at 51,190 yuan ($8,080.12) a tonne, its lowest close since September 28. The metal has lost 2.5 percent this week and is down 8.2 percent so far in 2018.
The most traded steel rebar contract in Shanghai slumped by 3.7 percent to a 3-1/2-month closing low of 3,709 yuan a tonne after Trump's tariff decision. Nickel, used to make stainless steel, closed down 1.5 percent in Shanghai and was down 0.7 percent in London. The most traded May aluminium contract closed down 1 percent at 14,075 yuan a tonne in Shanghai, while LME aluminium was down 0.4 percent. Deliverable ShFE aluminium stocks rose by 4,517 to a fresh record 846,913 tonnes.
US President Donald Trump's 25 percent import tariff on steel and 10 percent tariff on aluminium, with initial exemptions for Canada and Mexico, will begin within 15 days, a senior administration official said on Thursday. International Monetary Fund Managing Director Christine Lagarde said she feared a "tit-for-tat" escalation of trade retaliation over the US tariffs that would sap business confidence and investment, while Chinese metal associations called on Beijing to retaliate.
Investment bank Nomura, however, played down the impact on exports from top steel and aluminium maker China, noting that the "US share of China's total steel and aluminium exports was only (around) 16 percent".
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