Copper sags at the tariff turmoil, a firmer dollar
The price of copper subsided on Friday as a stronger dollar and uncertainty about demand that overshadow optimism that the United States and China tried to withstand their trade war.
Copper benchmark in the London Metal Exchange (LME) is traded 0.3% lower at $ 9,365 per metric ton in an official ring. The metal reached its peak of $ 9,481.50 earlier this week, the highest since April 3, and towards weekly profits.
News on Friday that China has given several exceptions to US imports from a 125% tariff and asked businesses to identify goods that can meet the requirements.
Earlier this week, US Finance Minister Scott Besent said that high tariffs between the two countries were not sustainable.
“It’s hard to know exactly where we will go with this trade war. Obviously, there is negotiation, but this is not an easy negotiation,” said Nitesh Shah, a commodity strategist at Wisdomtree.
“In the short term, we just do not know how many requests for destruction came as a result of the trade war. So, I was not so surprised we experienced the last day.”
Copper inventory in the warehouse monitored by SHFE fell by 32% for a week, the exchange said on Friday.
The steep decline was driven by consumers to issue shares they bought a few weeks earlier when copper prices fell dramatically after President Donald Trump imposed a new tariff, according to two traders.
Reuters reported on Thursday that a sharp decline in ShFE stock triggered fear of a short pressure.
Weight in a metal market is a leap in Dxy Dollar, triggered by signs of freshing tariff tension, which makes commodities with more expensive dollar prices for buyers using other currencies.
In another metal, Aluminum Ali1! down 0.2% to $ 2,443 per ton, Seng Znc1! Slipping 1.4% to $ 2,650, Lead Lead1! strengthened 0.1% to $ 1,962, Nickel Nickel1! Loose 0.7% at $ 15,710 while Tin Ftin1! up 1.4% to $ 32,195.
Source: Reuters
