METALS-Copper prices mixed as US tariff exemption sparks market adjustment

By Lucas Liew

Aug 1 (Reuters) - Copper prices were mixed on Friday as markets adjusted to a U.S. decision to exempt refined copper from a proposed 50% tariff.

Three-month copper on the London Metal Exchange CMCU3 edged up 0.16% to $9,626.5 per metric ton by 0217 GMT, but was poised to end the week down 1.46%.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.32% to 78,190 yuan ($10,847.97) a ton and was set to end the week down 1.12%.

The copper market is still adjusting after U.S. President Donald Trump said refined copper would not be subject to the 50% tariff, which has almost completely eliminated the COMEX premium over the LME, analysts from ANZ said in a note.

"There is a real risk that some copper sitting in COMEX warehouses will be re-exported to international markets, putting downward pressure on copper prices."

Copper trading on COMEX was suspended on Wednesday after prices dropped more than 20% in an hour.

If LME copper continues to trade at a healthy premium over COMEX, it could encourage further increases in copper stockpiles, which have already surged by about 50% in July.

On the supply side, copper output in top producer Chile fell 6% year-on-year in June, while demand concerns lingered as China's manufacturing activity contracted in July.

New export orders in China declined for a fourth consecutive month, while falling production led factories to cut jobs during the period.

Among other London metals, aluminium CMAL3 gained 0.14% to $2,568.5 a ton, nickel CMNI3 lost 0.27% to $14,895, lead CMPB3 declined 0.33% to $1,964, tin CMSN3 eased 0.14% to $32,665, and zinc CMZN3 remained flat at $2,760.5.

SHFE aluminium SAFcv1 lost 0.46% to 20,475 yuan, nickel SNIcv1 fell 0.67% to 119,670 yuan, lead SPBcv1 decreased 1.1% to 16,625 yuan, tin SSNcv1 dipped 0.72% to 264,250 yuan, and zinc SZNcv1 eased 0.38% to 22,355 yuan.

For the top stories in metals and other news, click

TOP/MTL or MET/L

DATA/EVENTS (GMT)

0600 UK Nationwide house price mm, yy July

0750 France HCOB Manufacturing PMI July

0755 Germany HCOB Mfg PMI July

0800 EU HCOB Mfg Final PMI July

0830 UK S&P GLOBAL MANUFACTURING PMI July

0900 EU HICP Flash YY July

0900 EU HICP-X F, E, A, T Flash MM, YY July

1230 US Non-Farm Payrolls, Unemployment Rate July

1230 US Average Earnings YY July

1345 US S&P Global Mfg PMI Final July

1400 US ISM Manufacturing PMI, U Mich Sentiment Final July

($1 = 7.2078 Chinese yuan)

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX