METALS-LME copper falls with tariff worries, stronger dollar

Updates prices

By Polina Devitt

LONDON, Feb 27 (Reuters) - Copper prices fell in London on Thursday amid fresh worries about global trade wars after U.S. President Donald Trump said that his proposed 25% tariffs on Mexican and Canadian goods will go into effect on March 4 as scheduled.

Three-month copper CMCU3 on the London Metal Exchange lost 0.6% to $9,407.50 a metric ton by 1701 GMT.

Trump also said he would impose an additional 10% duty on Chinese goods on that day -- on top of the 10% tariff that he levied on Feb. 4 on imports from China.

This set the dollar on track for its biggest daily gain in nearly two months, making dollar-priced metals more expensive for buyers using other currencies. FRX/

The most active May copper futures on the U.S. Comex exchange HGc3 rose 0.7% to $4.618 per lb, meaning a premium of the U.S. price over the LME contract at $777 a ton. This premium peaked above $1,100 two weeks ago.

Attention next week will be on China's annual National People's Congress meeting for the country's inflation targets and potential stimulus measures - as a gauge of prospects for metals demand by the world's top metals consumer.

Beijing on Thursday urged the U.S. to halt an investigation into potential new tariffs on copper imports, vowing to retaliate if Chinese entities become caught up in the levies.

LME tin CMSN3 fell 2.4% to $31,600, tracking a decline in Shanghai tin futures SSNcv1 that analysts attributed to expectations that supplies could resume from major supplier Myanmar's Wa state.

A notice circulating on Chinese social media on Wednesday, purporting to be from the Wa State Industrial Minerals Management Bureau, outlined the procedure for securing permits for mining and exploration.

If there is a restart in the Wa state coming up, it will take several months for the tin mining to return to full capacity, Tom Langston, senior market analyst at the International Tin Association, said in a note.

Meanwhile, LME aluminium CMAL3 rose 0.2% to $2,637.50 a ton, zinc CMZN3 was steady at $2,810.50 and nickel CMNI3 gained 1.7% to $15,830, while lead CMPB3 lost 0.2% to $2,007.50.

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