Shanghai copper eases on US-China trade tensions

Feb 5 (Reuters) - Shanghai copper prices eased on Wednesday as trading resumed after the Lunar New Year holidays, with fears of an escalation in trade tensions between the United States and top metals consumer China dampening market sentiment.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.4% to 75,280 yuan ($10,332.85) a metric ton by 0201 GMT. China's markets were closed from Jan. 28 to Feb. 4 for the Lunar New Year.

China on Tuesday imposed tariffs on some U.S. imports in a swift response to new U.S. duties on Chinese goods, raising the stakes in a showdown between the world's top two economies even as President Donald Trump offered reprieves to Mexico and Canada.

"This means that China's exports to the U.S will be subject to an additional tariff of 10%. This should not lead to any major distortions: only just below 4.5% of China's copper and aluminium exports go to the US," Commerzbank said in a note.

The package of retaliatory measures from China included stricter export regulations for tungsten and four other critical metals.

Market focus will be on if China announces further stimulus measures to boost its economy amid concerns about the tariff dispute with the United States and persistent worries about demand in the world's second-largest economy.

Three-month copper CMCU3 on the London Metal Exchange (LME) rose 0.2% to $9,171.5 a metric ton.

Three-month aluminium CMAL3 fell 0.3% to $2,630.5. LME zinc CMZN3 was steady at $2,807.5 a ton, tin CMSN3 added 0.3% to $30,370, lead CMPB3 climbed 0.2% to $1,974 and nickel CMNI3 gained 0.7% to $15,370.

SHFE aluminium SAFcv1 rose 0.2% to 20,275 yuan a ton, nickel SNIcv1 fell 0.5% to 123,440 yuan, zinc SZNcv1 eased 0.8% to 23,440 yuan, lead SPBcv1 gained 1.9% to 17,025 yuan and tin SSNcv1 advanced 1.4% to 251,660 yuan.

($1 = 7.2855 Chinese yuan)

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