METALS-Copper prices edge higher amid tariff uncertainty, Chile supply outlook

By Hongmei Li

SINGAPORE, July 8 (Reuters) - Copper prices edged higher on the London Metal Exchange and the Shanghai Futures Exchange on Tuesday, though uncertainty over U.S. tariffs and the potential for increased copper supply from Chile, the world's largest producer, capped further gains.

Three-month copper on the LME CMCU3 was up 0.3% at $9,860 per metric ton, as of 0703 GMT, and the most-traded copper contract on the SHFE SCFcv1 inched 0.14% higher to 79,620 yuan ($11,102.13) a ton.

The United States sent formal notices to 14 countries on Monday announcing new tariffs ranging from 25% to 40%, set to take effect on August 1. Additionally, U.S. President Donald Trump warned that an extra 10% tariff could be imposed on BRICS nations, including Brazil, Russia, India, and China, if they pursue what he described as "anti-American" policies during their summit in Brazil.

"The market focus is still very much on the U.S. trade tariffs, as all have not been finalized, and higher copper export value from Chile probably suggests a higher supply volume," said a Beijing-based metals analyst from a futures company.

Chile exported $4.67 billion worth of copper in June, marking an increase of 17.5% in the year-ago period.

"Chilean copper mines had their best month of export revenue in over three years in June," ANZ said.

Copper is still flowing to the U.S., as Washington's ongoing investigation into potential new copper import tariffs keeps the premium of COMEX copper futures over the LME benchmark elevated, and the COMEX copper stocks are at a seven-year high, or up 120% since mid-February. LMECMXCUc3, HG-STX-COMEX

LME nickel CMNI3 edged 0.31% lower to $15,130 a ton, while tin CMSN3 gained 0.57% to $33,475, lead CMPB3 went up 0.56% to $2,048, aluminium CMAL3 grew 0.54% to $2,587.5, and zinc CMZN3 up 0.47% to $2,697.

SHFE aluminium SAFcv1 gained 0.12% to 20,525 yuan a ton, while nickel SNIcv1 went down 0.67% to 120,370 yuan, zinc SZNcv1 lost 0.61% to 22,050 yuan, lead SPBcv1 eased 0.29% to 17,160 yuan, and tin SSNcv1 ticked down 0.08% to 265,480 yuan.

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