METALS-China metals tumble after trade war retaliation; copper hits over three-month low

SHANGHAI, April 7 (Reuters) - Base metal prices in China fell sharply on Monday as the escalating global trade war fueled fears of a recession, with copper prices sliding to a more than three-month low.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) dropped 7% to 73,640 yuan per metric ton as of 0138 GMT, marking its lowest level in over three months since January 3.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 1.9% to $8,614.5 per metric ton.

Top metals consumer China hit back on Friday with additional 34% tariffs on all U.S. goods from April 10, after U.S President Donald Trump imposed a 34% tariff on most Chinese goods as part of his sweeping reciprocal tariff program.

"With China’s markets closed last Friday, which coincides with significant declines in LME base metals, we anticipated a sharp drop in China’s commodity prices today. Some even hit their lower limits as soon as trading began," a base metals trader said.

"The retaliatory tariff makes us worry about trade war, which will impede economic growth globally," a second trader said.

SHFE aluminium SAFcv1 slid 4.5% to 19,515 yuan a ton, zinc SZNcv1 lost 4.2% to 22,195 yuan, lead SPBcv1 fell 2.4% to 16,810 yuan, while nickel SNIcv1 was down 6.7% to 120,370 yuan, tin SSNcv1 fell 6.5% to 273,680 yuan.

Among other metals, LME aluminium CMAL3 lost 0.3% to $2,372.5 a ton, lead CMPB3 fell 0.3% to $1,901, zinc slid 0.8% to $2,639, tin CMSN3 was down 2.2% at $34,615 and nickel CMNI3 was down 0.1% at $14,775 a ton.

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