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METALS-Copper slips on uncertainty over trade talks and demand

ReutersJun 10, 2025 4:26 PM

By Eric Onstad

- Copper prices lost ground on Tuesday as many investors shunned the market in the face of uncertainty over U.S.-China trade talks and how the trade war between the world's two largest economies will hit economic growth and metals demand.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.4% at $9,757.50 a metric ton by 1610 GMT, having recovered by 20% since hitting its lowest since November 2023 in April.

"We have a lot of market complacency right now. Volatility seems to be drifting lower across markets even though we have yet to see any breakthrough on trade talks with China," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

U.S. Commerce Secretary Howard Lutnick said on Tuesday that trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls.

More copper inventories left LME-registered warehouses as traders took advantage of higher U.S. prices in expectation that U.S. President Donald Trump will impose tariffs on the metal after duties were levied on aluminium and steel.

LME copper stocks MCUSTX-TOTAL eroded by another 2,000 tons to 120,400 tons, data showed on Tuesday, having halved over the past three months.

U.S. Comex copper futures HGc2 dropped 0.3% to $4.91 per lb, bringing the premium over LME copper to $1,067 a ton.

"The appetite is failing somewhat, especially in the New York market, because the tariff announcement will be a binary event and some fireworks can probably not be avoided once you get that news out," said Hansen.

Traders are awaiting the outcome of an investigation Trump ordered in February on potential copper import tariffs.

In China, zinc on the Shanghai Futures Exchange SZNcv1 softened for a third trading day, losing 1.3% to its lowest since late April at 21,845 yuan a ton.

"China's domestic demand has shown signs of weakening recently and buyers have been procuring to meet their immediate needs at lower prices," said Shanghai-based commodity market research house SHMET.

Among other LME metals, aluminium CMAL3 added 0.5% to $2,492 a ton and zinc CMZN3 rose 0.3% to $2,657. Nickel CMNI3 ceded 0.8% to $15,305, tin CMSN3 edged down 0.1% to $32,665 and lead CMPB3 lost 0.2% to $1,983.

($1 = 7.1871 Chinese yuan)

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