US copper bounces after Trump sets a tariff date, but below peak

By Eric Onstad

LONDON, July 10 (Reuters) - U.S. copper prices rebounded on Thursday after President Donald Trump said a 50% tariff would be imposed from August 1, but held below their record peak due to a glut of metal already in the United States and uncertainty over details.

Trump signalled on Tuesday that he was imposing fresh tariffs on copper. He confirmed that on Wednesday and announced the date.

The most active COMEX copper futures contract HGc3 was up 1.7% to $5.58 a lb at 1705 GMT, down from a record high of $5.90 touched on Tuesday.

"I think the spike high will probably be left on its own for a little while," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

"The market will now be left with ample supplies for the foreseeable future and that's one reason why premiums in New York should not reflect the 50% tariff," he said.

"Also, plenty of things can happen in the next three weeks."

The premium of COMEX over LME on Thursday was at $2,615 a metric ton, or 27%, down slightly from a peak hit on Tuesday.

Traders anticipating copper tariffs after a probe was announced in February have shipped about a year's worth of imports so far this year to the United States.

Analysts say the COMEX premium will likely ease in the coming months as the stockpile is slowly eroded and the stiff tariffs hit demand.

Copper prices on the Shanghai Futures Exchange came under pressure, weighed down by expectations that copper shipments to China will rise as some supplies are redirected to countries outside the U.S., a Shanghai-based metals analyst at a futures company said.

The most-traded copper contract on the SHFE SCFcv1 fell for the fifth day, down 0.4% to 78,600 yuan ($10,952.87) per ton after touching its lowest since June 23.

Benchmark three-month copper on the LME CMCU3 rebounded on Thursday after five days of losses, rising 0.6% to $9,688.50 a ton.

Among other metals, LME aluminium CMAL3 added 0.4% to $2,608 a ton, nickel CMNI3 gained 2% to $15,285, zinc CMZN3 climbed 1.4% to $2,779.50, tin CMSN3 advanced 0.4% to $33,430, while lead CMPB3 slipped 1.1% to $2,034.

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($1 = 7.1762 Chinese yuan)

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