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METALS-Shanghai copper edges higher on potential auto tariff pause, China stimulus bets

ReutersApr 15, 2025 6:47 AM

- Shanghai copper edged higher on Tuesday, aided by expectations of a pause on auto tariffs and optimism that top consumer China will launch additional stimulus to bolster economic growth.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 has risen by 0.2% to 75,970 yuan ($10,394.03) per ton as of 0628 GMT.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was steady at $9,182 a metric ton. In the previous session, the contract hit its highest level since April 4.

U.S. President Donald Trump said on Monday he was considering a modification to the 25% tariffs imposed on the import of autos and auto parts from Mexico, Canada and other places, and that automakers "need a little bit of time because they're going to make 'em here."

However, the White House announced investigations into whether pharmaceutical and semiconductor imports threaten national security.

"The potential auto tariffs pause is the supporting factor for copper to trade in a firm tone in today's Asia session in the absence of other related data or events so far," said Kelvin Wong, OANDA's senior market analyst, Asia Pacific.

Meanwhile, China's imports of unwrought copper and copper products in March declined 1.4% to 467,000 tons from a year earlier, data from the General Administration of Customs showed on Monday.

Market participants expect China to launch more stimulus measures to bolster consumption and cushion the economic impact of an escalating China-U.S. trade war.

SHFE aluminium SAFcv1 eased 0.7% to 19,570 yuan a ton, zinc SZNcv1 lost 0.6% to 22,340 yuan, lead SPBcv1 retreated 0.8% to 16,780 yuan, tin SSNcv1 fell 0.2% to 259,420 yuan but nickel SNIcv1 was up 1% at 124,200 yuan.

LME aluminium CMAL3 gained 0.2% to $2,378.5 a ton, lead CMPB3 was steady at $1,916.5, tin CMSN3 was up 0.5% at $31,435, nickel CMNI3 rose 0.8% to $15,430 a ton, but zinc CMZN3 fell 0.2% to $2,632.

($1 = 7.3090 Chinese yuan )

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