METALS-Copper prices rangebound on US trade talks, 50% metal tariff

By Hongmei Li

SINGAPORE, July 14 (Reuters) - Copper prices on the London Metal Exchange and the Shanghai Futures Exchange were rangebound on Monday as investors assessed the impact of trade talks between the U.S. and its major partners and a 50% import tariff on the metal.

Three-month copper on the LME CMCU3 inched up 0.14% to $9,674 per metric ton by 0702 GMT, while the most-traded copper contract on the SHFE SCFcv1 fell 0.17% to 78,400 yuan ($10,935.67).

U.S. President Donald Trump said on Saturday he would impose a 30% tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries and leaving them less than three weeks to hammer out framework deals that could lower the threatened tariff rate.

This follows a 50% tariff imposed on copper imports, also to be effective on August 1.

"It's uncertain where copper demand will go with all these tariffs. The U.S. has imported quite a lot of copper before the tariff announcement, so we're wondering whether China, as the largest consumer and producer, will stock up some too, as it is crucial to the military and economy," a Shanghai-based metals analyst at a futures company said.

Copper inventories in SHFE-monitored warehouses CU-STX-SGH remained low, down 4% on-week at 81,462 tons as of July 11.

Meanwhile, SHFE aluminium SAFcv1 fell 1.45% to 20,415 yuan a ton, and LME aluminium CMAL3 fell 0.69% to $2,585.

"China's lower unwrought aluminium and products exports in June was kind of expected with the U.S. doubling aluminium import tariffs to 50% in early June, and summer is a low consumption season in China," the Shanghai analyst said.

In June, China's unwrought aluminium and products exports fell 19.84% on the year, and the January-June volume was down 8%.

LME lead CMPB3 fell 0.45% to $2,012.5 per ton, zinc CMZN3 eased 0.13% to $2,735, while tin CMSN3 gained 0.15% to $33,700, and nickel CMNI3 was up 0.08% to $15,210.

SHFE tin SSNcv1 gained 0.41% at 266,720 yuan a ton, while zinc SZNcv1 slipped 0.67% to 22,250 yuan, and lead SPBcv1 was down 0.12% to 17,085 yuan.

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