METALS-Copper hits over five month high on tariff expectation

SHANGHAI, March 20 (Reuters) - Copper prices on the London Metals Exchange hit their highest in more than five months on Thursday, with markets watching out for potential U.S. tariffs on copper.

Benchmark three-month copper CMCU3 on the LME was up 0.2% to $10,009 a metric ton as of 0308 GMT, hitting the highest since early October 2024.

U.S. President Donald Trump has ordered a probe into possible new tariffs on copper, inflating the premium of Comex copper over the LME contract, which was at a record high of $1,259 a ton on Wednesday, surpassing a record peak hit on Tuesday.

"Copper prices are likely to remain supported in the near term amid front-loading ahead of tariffs," ING economics said in a note.

The threat of copper tariffs under the Trump administration has led to a surge of copper imports into the U.S., consequently tightening supplies in other regions, as noted by ING.

The LME Nickel CMNI3 price was the worst performer among the base metals sector and was down 1.9% to $16,095 a ton, with supply worries eased by news that the major nickel processing complex in Indonesia remained unaffected by recent floods.

LME aluminium CMAL3 rose 0.1% to $2,672.5 a ton, lead CMPB3 was up 0.1% to $2,088, zinc gained 0.2% to $2,931 and tin CMSN3 was up 0.1% to $35,040.

SHFE copper SCFcv1 climbed 1.0% to 81,440 yuan ($11,262.46) a ton, SHFE aluminium SAFcv1 added 0.9% to 20,855 yuan a ton, zinc SZNcv1 slid 0.6% to 23,695 yuan, lead SPBcv1 was unchanged at 17,630 yuan and nickel SNIcv1 lost 1.5% to 128,390 yuan. Tin SSNcv1 lost 0.4% to 280,220 yuan.

($1 = 7.2311 Chinese yuan renminbi)

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