METALS-US trade talks weigh on copper and trim COMEX premium

By Polina Devitt

LONDON, July 29 (Reuters) - Copper prices were little changed on Tuesday as traders awaited the outcome of U.S. trade talks with Chile and China for clarity on a U.S. plan to impose a 50% import tariff on the metal from Friday.

The three-month copper contract CMCU3 on the London Metal Exchange was up 0.1% at $9,802.50 a metric ton by 1606 GMT, holding just above the 21-day moving average.

"With the August 1 date looming, there remains market uncertainty around what forms of copper will be covered, and if there will be any carve-outs for key suppliers such as Chile, which would blunt the impact," said Standard Chartered analyst Sudakshina Unnikrishnan.

The premium on the most active COMEX copper futures HGc3 over the LME benchmark fell to 26% from last week's 30% after leading global supplier Chile said the U.S. copper tariff would be discussed within broader trade talks in Washington this week.

Providing another layer of uncertainty, U.S. Commerce chief Howard Lutnick said on Tuesday that President Donald Trump would make his trade deal decisions this week even as separate negotiations with China and the European Union continue.

China is the world's largest metals consumer. The International Monetary Fund raised its outlook for China's 2025 economic growth to 4.8% from 4%.

U.S. and Chinese officials finished two days of talks in Stockholm on Tuesday. China's top trade negotiator Li Chenggang said the two sides agreed to push for an extension of a 90-day tariff truce struck in mid-May, without specifying when and for how long such an extension could come into force.

Among other LME metals, aluminium CMAL3 fell 1% to $2,606 per ton. Lutnick said U.S. and EU officials were still discussing steel and aluminium tariffs following their framework deal announced on Sunday.

Zinc CMZN3 slid 0.2% to $2,810, while nickel CMNI3 rose 0.1% to $15,280. Lead CMPB3 and tin CMSN3 were steady at $2,016.50 and $33,655, respectively.

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