METALS-Copper prices off multi-month highs, potential US tariffs on metal in focus

By Hongmei Li

SINGAPORE, July 4 (Reuters) - Copper prices on the London Metal Exchange and Shanghai Futures Exchange receded from multi-month highs on Friday, though SHFE copper notched a weekly gain, while traders looked out for potential U.S. tariffs on copper imports.

Three-month copper CMCU3 on the LME fell 1.06% to $9,848.5 per metric ton by 0736 GMT, and was down 0.31% on the week so far.

The most-traded copper contract SCFcv1 on the SHFE eased 1.28% to 79,730 yuan ($11,128.17) but logged a second straight weekly gain, rising 0.54%.

"Traders might have felt a bit risky for copper prices to hover at the highest levels since late March on Friday, as fundamentals have not changed so much, China's June copper output was reported up 11.4% on year, easing the concern about supply tightness," a Shanghai-based metals analyst from a futures company said.

"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 3,700 tons or 4.1% in 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," the Shanghai analyst said.

LME nickel CMNI3 slipped 0.56% to $15,365 a ton, zinc CMZN3 lost 0.53% to $2,736, tin CMSN3 fell 0.44% to $33,700, lead eased 0.15% to $2,061, and aluminium ticked down 0.19% to $2,600.

SHFE nickel SNIcv1 gained 0.64% to 122,270 yuan a ton, zinc > rose 0.34% to 22,410 yuan, and lead SPBcv1 gained 0.2% to 17,295 yuan, while tin SSNcv1 fell 0.65% to 267,250 yuan, and aluminium SAFcv1 shed 0.24% to 20,635 yuan.

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