METALS-Copper prices rangebound as US tariff exemption for cathodes calms markets

By Hongmei Li

SINGAPORE, July 31 (Reuters) - Copper prices were rangebound on Thursday as traders felt relieved after U.S. President Donald Trump excluded copper cathodes, the most liquid red metal product in the market, from the 50% import tariff on the metal to be effective on August 1.

Three-month copper LME CMCU3 edged up 0.39% to $9,736 per metric ton by 0104 GMT, while the most-traded copper contract on SHFE SCFcv1 eased 0.48% to 78,710 yuan ($10,941.97) a ton.

LME and SHFE copper contracts are priced on copper cathode.

Trump on Wednesday signed a proclamation ordering 50% tariffs on semi-finished copper products and copper-intensive derivative products as of August 1. He exempted copper cathodes and other red metal input materials such as scrap, ores, concentrates, mattes and anodes.

"COMEX copper price tumbled as it had been with a large premium against the LME copper, but traders outside the U.S. have responded more calmly," a Shanghai-based metals analyst at a futures company said.

"They must have felt relieved that the copper market has finally been back to normal after the speculation on the U.S. copper import tariffs in the past few months."

U.S. September COMEX copper futures plunged 19.1% to $4.517 a lb, or $9,958 per metric ton as of 0130 GMT, and the fall in COMEX copper slashed the premium over the London benchmark to $222 a ton from recent levels above $3,000 a ton.

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($1 = 7.1934 Chinese yuan)

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