METALS-Copper slides after stronger than expected US jobs data

By Pratima Desai

LONDON, July 3 (Reuters) - Copper prices slipped on Thursday as the dollar rose after data showed stronger than expected jobs growth in the United States, suggesting the U.S. Federal Reserve may not immediately cut interest rates.

Benchmark copper CMCU3 on the London Metal Exchange was down 0.5% at $9,965 a metric ton at 1603 GMT, having touched a three-month high of $10,020.50 on Wednesday.

U.S. nonfarm payrolls increased by 147,000 jobs in June compared with a consensus forecast of 110,000, while joblessness fell to 4.1% compared with forecasts for a rise to 4.3%.

A weakening U.S. currency, making dollar-priced metals cheaper for buyers with other currencies, has buoyed industrial metals prices this year.

Another strong influence on copper prices has been a U.S. investigation into potential tariffs on imports of the metal used in the power and construction industries, which could create shortages and drive up prices on COMEX HGc1.

The COMEX copper premium of about $1,300 a ton over LME prices spurs traders and producers to divert metal to the U.S. from elsewhere.

"While U.S. copper imports have not yet been hit by a tariff ... the market is still pricing in this risk," said Panmure Liberum analyst Tom Price.

Much of the metal shipped to the United States has come from LME-registered warehouses. Stocks 0#MCUSTX-LOC in the LME system have dropped 65% to 94,325 tons since the 2025 peak in mid-February.

Cancelled warrants, or metal earmarked to leave LME warehouses, at 34% indicate that another 31,900 tons are waiting to be shipped out.

However, recent data shows the premium, or backwardation, CMCU0-3 for the cash copper contract over the three-month forward is starting to attract metal back to the LME.

In the port of Gwangyang in South Korea, copper stocks in LME warehouses are up by 2,250 tons this week. In Kaohsiung, Taiwan, they are up by 1,250 tons.

In other metals, aluminium CMAL3 slipped 0.6% to $2,603 a ton, zinc CMZN3 eased 0.4% to $2,745, lead CMPB3 was up 0.2% at $2,064 while tin CMSN3 rose 0.3% to $33,825 and nickel CMNI3 advanced 0.6% to $15,400.

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