METALS-Copper edges up on trade truce hopes; tariff clarity expected on August 1

By Lucas Liew

July 30 (Reuters) - Copper prices ticked higher on both the London and the Shanghai exchanges on Wednesday, as investors were hopeful for a possible extension of the U.S.-China trade truce even as the market awaited more clarity on the August 1 tariff deadline.

Three-month copper on the London Metal Exchange CMCU3 climbed 0.16% to $9,813.5 per metric ton by 0146 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.18% to 79,120 yuan ($11,029.33) a ton.

"Nothing seems certain yet; the remarks from the (U.S. and China) officials sound hopeful. I am still uncertain what will come afterwards though the two countries said they would push to extend the trade truce," a Shanghai-based metals analyst at a futures company said.

More details may be available on August 1 when U.S. tariffs on its trade partners, including its 50% copper import tariffs, are all said to be effective.

Elsewhere, the premium of COMEX over LME copper fell to 26% after top producer Chile said it was seeking exceptions from 50% U.S. tariffs.

Grupo Mexico, a leading copper miner, reported a 10% rise in net profit for the second quarter amid lower mining costs and strong performance in its copper byproducts business. It views the looming tariffs as an investment opportunity to expand production run by its U.S. subsidiary, Asarco, in Arizona.

Among other London metals, aluminium CMAL3 gained 0.12% to $2,608.5 a ton, zinc CMZN3 added 0.27% to $2,812.5, lead CMPB3 climbed 0.1% to $2,018.5 and tin CMSN3 edged up 0.02% to $33,700, while nickel CMNI3 fell 0.4% to $15,255.

SHFE nickel SNIcv1 rose 0.09% to 122,010 yuan, tin SSNcv1 strengthened 0.17% to 267,810 yuan, and zinc SZNcv1 increased 0.2% to 22,705 yuan, while aluminium SAFcv1 lost 0.02% to 20,620 yuan a ton, and lead SPBcv1 fell 0.3% to 16,895 yuan.

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DATA/EVENTS (GMT)
0530 France GDP Preliminary QQ Q2

0800 Germany GDP Flash QQ SA, YY NSA Q2

0900 EU GDP Flash Prelim QQ, YY Q2

0900 EU Consumer Confid. Final July

1230 US GDP Advance Q2

($1 = 7.1736 Chinese yuan)

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