METALS-Copper prices ease on caution amid tariff talks

By Lucas Liew

July 29 (Reuters) - Copper prices slipped on both the London and Shanghai exchanges on Tuesday, as traders weighed U.S.-China negotiations and the talks between the world's top copper producer Chile and the U.S. over the latter's 50% copper tariffs from August 1.

The three-month copper contract on the London Metal Exchange CMCU3 was down 0.35% at $9,758.5 per metric ton by 0704 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 edged down 0.18% to 78,840 yuan ($10,985.09) a ton.

"The softening in copper prices reflects similar declines in other Chinese futures and is likely to be short-lived, as traders are cautious and closely watching U.S.-China trade talks and developments in U.S. copper import tariffs," a Shanghai-based analyst at a futures company said.

Top U.S. and Chinese economic officials are in Stockholm since Monday to resolve trade disputes between the world's top two economies, and to extend a truce by three months.

Elsewhere, Chile, the largest provider of refined copper to the U.S., expects U.S. copper tariffs to be discussed within broader trade talks in Washington this week, Finance Minister Mario Marcel said on Monday.

Among other LME metals, aluminium CMAL3 slid 0.65% to $2,614.5 a ton, nickel CMNI3 fell 0.45% to $15,200, zinc CMZN3 lost 0.34% to $2,808, lead CMPB3 eased 0.12% to $2,014.5 and tin CMSN3 decreased 0.31% to $33,610.

SHFE nickel SNIcv1 fell 0.85% to 121,800 yuan a ton, aluminium SAFcv1 dipped 0.22% to 20,605 yuan, zinc SZNcv1 was down 0.35% at 22,655 yuan, tin SSNcv1 lost 0.76% to 266,660 yuan, and lead SPBcv1 eased 0.24% to 16,900 yuan.

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