METALS-Copper steadies as tariff reprieve lifts risk appetite

By Brijesh Patel

May 28 (Reuters) - Copper prices in London were stable on Wednesday, supported by improved risk appetite across financial markets following U.S. President Donald Trump's latest tariff respite, though a firm dollar kept gains in check.

Three-month copper on the London Metal Exchange CMCU3 held its ground at $9,593.5 per metric ton by 0214 GMT.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 edged 0.1% higher to 78,390 yuan ($10,886.29) per ton.

"Copper prices in the last two weeks have been trading in line with all sentiment in the global stock market. Trade optimism has lifted the US stock market and it has a kind of a spill over impact on copper prices as well," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA.

Trump rolled back on Sunday his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks.

This boosted risk sentiment in the wider financial markets. MKTS/GLOB

Data showed on Tuesday that U.S. consumer confidence snapped five straight months of decline and improved in May amid a truce in the trade war between Washington and Beijing.

Meanwhile, the dollar index =USD added to overnight gains, making dollar-denominated assets more expensive to holders of other currencies. FRX/

The global refined copper market showed a 17,000 metric tons surplus in March, compared with a 180,000 metric tons surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

Among other London metals, aluminium CMAL3 eased 0.3% to $2,478.50 a ton, zinc CMZN3 edged 0.1% lower to $2,703, lead CMPB3 shed 0.3% to $1,979.5 and nickel CMNI3 weakened 0.3% to $15,370. Tin CMSN3 was up 0.1% to $32,630.

SHFE aluminium SAFcv1 rose 0.5% to 20,165 yuan a ton, lead SPBcv1 was down 0.2% at 16,765 yuan, nickel SNIcv1 edged 0.4% lower to 121,870 yuan, while zinc SZNcv1 was steady at 22,415 yuan and tin SSNcv1 fell 0.3% to 264,440 yuan.

($1 = 7.2008 Chinese yuan)

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