METALS-Copper pulls back from five-month high on global growth worries

By Eric Onstad

LONDON, March 13 (Reuters) - Benchmark copper prices in London retreated from five-month highs on Thursday as worries about global growth dulled the impact of U.S. tariffs inflating metals prices, while tin prices spiked to a 32-month peak after a mine in Congo closed.

Three-month copper on the London Metal Exchange CMCU3 was down 0.1% at $9,759.50 a metric ton by 1715 GMT, paring gains after hitting the highest since October 11 at $9,811.

U.S. Comex copper futures HGc3, however, rose 1.6% to $4.93 a lb as traders sought to adjust for the impact of U.S. tariffs.

That sent the premium of Comex over LME prices to $1,036 a ton, its highest since it touched a record on February 13.

Traders have been bidding up metals prices affected by U.S. President Donald Trump's campaign to slap tariffs on foreign imports in an effort to boost U.S. industry. LME copper has gained 11% in 2025.

U.S. tariffs of 25% on steel and aluminium products took effect on Wednesday, while Trump has also ordered a probe into possible new tariffs on copper.

"Prices have been going up, but for the wrong reason. It's not because demand is doing well, it's because there's still an ongoing adjustment across the metal markets for tariffs," said Tom Price, head of commodities strategy at Panmure Liberum.

"People who actually buy copper, aluminium and steel, they have no choice in the short term but to pay up for it, but then over time they start to reduce the amount they use or just defer consumption," he added.

"There's a lot of confusion in the market trying to work out what sort of risk they're managing."

Global share markets fell on Thursday on disquiet that an escalating trade war will curb global growth after Trump threatened to slap further tariffs on European Union goods. MKTS/GLOB

LME tin CMSN3 rocketed 8.9% to $36,400 a ton after touching its strongest since July 2022, after Alphamin Resources said it would temporarily cease operations at its Bisie tin mine in the Democratic Republic of the Congo due to unrest.

LME zinc CMZN3 gained 1.1% to $2,954 a ton after hitting a seven-week high on Wednesday in the wake of Nyrstar announcing 25% production cuts at its Hobart zinc operations in Australia from April.

Among other metals, LME aluminium CMAL3 lost 0.2% to $2,698 a ton, nickel CMNI3 eased 1% to $16,470 and lead CMPB3 fell 0.4% to $2,073.

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