METALS-Copper set for weekly gains; potential US tariffs on metal eyed

By Hongmei Li

SINGAPORE, July 4 (Reuters) - Copper prices on the London Metal Exchange and Shanghai Futures Exchange were set for a second straight weekly gain on Friday, despite minor fluctuations, while traders looked out for potential U.S. tariffs on copper imports.

Three-month copper CMCU3 on the LME added 0.06% to $9,960 per metric ton by 0106 GMT, rising 0.85% so far this week, while the most-traded copper contract SCFcv1 on the SHFE eased 0.31% to 80,510 yuan ($11,231.24), gaining 1.02% this week.

"The dollar has strengthened a bit as (the) United States may not cut interest rates soon with better-than-expected payrolls and unemployment data, the 'big beautiful bill' has been passed and the focus of the copper market has been back to the possible import tariffs by the U.S.," a Beijing-based metals analyst with a futures company said.

Two analysts from China dismissed the significance of the recent rises in total copper stocks MCUSTX-TOTAL in LME-registered warehouses. The volume grew by 3,700 tons or 4.1% for three consecutive days to July 3, after declining gradually from mid-April.

"Copper will be shipped to the U.S. from elsewhere so long as the U.S. tariff is not a done deal," a Shanghai-based metals analyst with a futures company said.

The COMEX copper premium over LME prices stood at around $1,300 a ton on Thursday, while canceled warrants, or metal earmarked to leave LME warehouses, totalled 31,900 tons.

LME nickel CMNI3 slipped 0.33% to $15,400 a ton and zinc CMZN3 lost 0.31% to $2,742.

SHFE nickel SNIcv1 gained 0.75% to 122,400 yuan a ton, lead SPBcv1 rose 0.12% to 17,280 yuan and tin SSNcv1 added 0.08% to 269,220 yuan. Aluminium SAFcv1 shed 0.12% to 20,660 yuan.

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