Citi revises 0-3 month copper to $9,200/t from $8,800/t

Aug 15 (Reuters) - Citi forecast on Friday a slower drop in copper prices than anticipated over the next three months, citing a slower-than-expected unwinding of excess U.S. copper inventories linked to Section 232 tariffs.

Additionally, dollar weakness is expected to help cushion the downside, the investment bank said.

It raised its three-month copper forecast to $9,200 a tonne from $8,800/t, a second such upward revision from the initial downgrade of 0-3 month prices to $8,000/t on April 7 in reaction to U.S. President Donald Trump's 'liberation day' tariff announcement.

"We remain bearish on copper for the rest of this year, just no longer sub-$9k bearish," the bank said.

In late July, Trump signed a proclamation ordering a 50% tariff on semi-finished copper products, such as wires, and copper-intensive derivative products, such as cables.

The tariff rate excludes copper scrap and input materials such as copper ores, concentrates, mattes, cathodes and anodes

The measure came after a U.S. investigation under Section 232, which Trump ordered in February.

Section 232 of the U.S. Trade Expansion Act is a provision that allows the president to impose tariffs or other restrictions on imports that are deemed to threaten national security.