METALS-US copper surges as Trump moves on tariffs

Updates prices at 1735 GMT

By Eric Onstad

LONDON, Feb 26 (Reuters) - U.S. copper prices jumped on Wednesday after President Donald Trump moved closer to imposing tariffs on imports, while a power outage in top producer Chile also supported the wider market.

The most active May copper futures on the U.S. Comex exchange HGc4 spiked as much as 4.9% and were last up 1.7% at $4.60 a lb. They touched an 8-1/2 month peak on February 13.

The U.S. futures outperformed three-month copper on the London Metal Exchange CMCU3, which rose 0.4% to $9,439.50 a metric ton by 1735 GMT.

"The U.S. copper premium over London is reflecting the pain U.S. consumers of this important metal will have to endure should the tariffs be rolled out," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The premium of Comex copper over the LME climbed to $681 per ton from $580 a day earlier, but was lower than a peak of $1,153 on February 13.

Trump, who previously said he planned tariffs on copper, on Tuesday ordered a probe into duties on imports of the metal critical to electric vehicles, military hardware, the power grid and many consumer goods.

"The U.S. has no chance of beefing up their own production and refining capacity anytime soon, so this looks like another own goal. Not least considering most of the copper is imported from a relatively friendly nation like Chile," Hansen said.

The underlying copper market fundamentals are relatively soft, with inventories rising, but a power outage in Chile was also providing support, he added.

Investors have given notice to take out large amounts of copper - 85,400 tons over the past week - from LME warehouses, some of which analysts say will be shipped to the United States.

Comex copper inventories have more than doubled over the past five months to 96,760 tons. HG-STX-COMEX

A massive power outage across Chile plunged the country's capital, Santiago, into darkness on Tuesday, but the power grid and major copper mines slowly came back online on Wednesday.

LME aluminium CMAL3 eased 0.1% to $2,635 a ton and tin CMSN3 gave up 1.3% to $32,350 while zinc CMZN3 rose 0.2% to $2,818, nickel CMNI3 advanced 1.6% to $15,575 and lead CMPB3 gained 0.7% to $2,006.

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX