METALS-Copper under pressure from stronger dollar, demand worries

By Pratima Desai

LONDON, July 8 (Reuters) - Copper prices slipped on Tuesday as the dollar rose, worries about economic slowdown and demand growth caused by U.S. President Donald Trump's tariffs resurfaced and rising inventories triggered selling.

Benchmark copper CMCU3 on the London Metal Exchange (LME)was down 0.3% at $9,802 a metric ton at 1621 GMT as the dollar rose after the New York open.

However, a sliding U.S. currency this year has made dollar-priced metals cheaper, potentially boosting demand for industrial metals.

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, postponed from July 9.

Trump also warned 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.

Also weighing on the market was appetite for importing copper in top consumer China, as can be seen in the Yangshan copper premium SMM-CUYP-CN falling to $29 a ton on Monday from $103 a ton in early May.

Stocks of copper MCUSTX-TOTAL in LME-registered warehouses were at 102,500 tons, up 13% since June 27 and easing concerns about availability on the LME market. However, traders said deliveries need to be larger.

Cancelled warrants for metal earmarked for delivery at 36% indicate another 37,100 tons of copper are due to leave the LME system and large warrant holdings 0#LME-WHL, 0#LME-WHC are still dominating trading in nearby contracts.

The premium for buying copper tomorrow and selling it the day after – known as tom-next – flared out to $20 a ton MCUT-0=LX from levels around zero on Monday ahead of settlement next week, when short position holders will have to cut or rollover their contracts to sell.

Meanwhile, aluminium inventories MALSTX-TOTAL in LME storage have risen 47,450 tons to 384,350 tons since June 25 and helped reverse the premium for the cash over the three-month forward into a discount CMAL0-3.

Three-month aluminium CMAL3 rose 0.7% to $2,591, zinc CMZN3 gained 1.6% to $2,728, lead CMPB3 was up 1.1% at $2,059, tin CMSN3 added 0.6% to $33,470 and nickel retreated 0.9% to $15,040 a ton.

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