METALS-US copper prices surge on tariff concerns; premium widens over LME benchmark
By Polina Devitt
LONDON, March 5 (Reuters) - U.S. copper prices jumped on Wednesday as worries about U.S. import tariffs widened, while China's fresh stimulus measures, Germany's infrastructure fund plans and a weaker dollar supported the wider market for the metal.
The most active May copper futures on the U.S. Comex exchange HGc3 surged 5.5% to $4.805 a lb, the highest since February 14.
The U.S. futures outperformed three-month copper on the London Metal Exchange CMCU3, which rose 2.6% to $9,583 a metric ton by 1700 GMT after hitting $9,593.5, its highest since February 14.
"The New York futures market has for now completely dislocated from the global markets," Ole Hansen, head of commodity strategy at Saxo Bank, said.
The premium of Comex copper over the LME was last at $1,010 per ton vs $737 a day earlier. It peaked at $1,153 on February 13.
U.S. President Donald Trump's fresh 25% tariffs on most imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%. On March 12, Trump's 25% import tariffs on aluminium and steel are scheduled to take effect.
In February, Trump also ordered a probe into duties on copper imports. While this probe usually takes several months, the market has been trying to guess the possible final tariff figure.
The LME copper contract was on track for the largest daily gain in four months also because China, the world's top metals consumer, unlocked more fiscal stimulus and German political parties proposed creating a 500 billion euro ($529 billion) infrastructure fund.
Providing further support to the metal, which is used in the power and construction industries, the dollar fell against its peers FRX/ and LME daily data showed a continuing decline in available copper stocks in the LME-registered warehouses.
LME's on-warrant copper stocks fell to 148,300 tons, the lowest level since June 14, after 10,275 tons of net fresh cancellations in Asia. The available stocks are down 43% in the past two weeks. 0#MCUSTX-LOC, MCUSTX-TOTAL
Meanwhile, LME aluminium CMAL3 gained 1.8% to $2,662 a ton, zinc CMZN3 added 2.4% to $2,879, tin CMSN3 advanced 0.7% to $31,780, lead CMPB3 firmed 1.1% to $2,032 and nickel CMNI3 fell 0.6% to $15,870.
Lead and nickel hit their highest prices since December 12 and December 13, respectively.
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