Base metals lost more ground on Thursday, with Shanghai zinc and copper slumping to near one-year lows, as the market braced for further US tariffs on Chinese goods from Friday and a tit-for-tat response from Beijing. The most traded August copper contract on the Shanghai Futures Exchange fell as much as 3.1 percent before closing down 2.8 percent at 49,330 yuan ($7,436.72) a tonne, its lowest close since late July 2017.
Shanghai zinc fell as much as 4.7 percent, the most since Sept. 6, 2017, before finishing down 4.3 percent at 21,750 yuan a tonne, its lowest close since Aug. 2, 2017. Shanghai nickel closed down 2.1 percent, lead lost 1.9 percent and tin slipped 1.8 percent, and aluminium closed down 0.8 percent.
Demand for industrial metals could take a hit if the United States goes ahead with its new tariffs on $34 billion worth of goods from the world's largest metals consumer. China has vowed to respond with its own tariffs on US goods. Copper, seen as a bellwether of economic health, ended down 2.8 percent in Shanghai, having hit its lowest since July 2017 overnight, and was trading down 0.3 percent in London.
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