Copper falls after report of White House hesitancy over tariff plan
COPX•Inventories and other metals also move lower
The U.S. administration under President Donald Trump is under pressure ahead of mid-term elections in November to demonstrate that its policies are lowering costs for American consumers and businesses.
"That update most certainly sent the cat in among the pigeons," said Ole Hansen, head of commodity strategy at Saxo Bank, referring to Reuters' report.
Copper, widely used in power and construction, has gained 16% this year as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, stoking concerns over availability in traditional consuming regions.
Copper stocks in the COMEX warehouses have reached a record high of 696,259 tons after months of inflows.
"Whether these inventories ultimately become stranded, or eventually return to the global market if no tariffs are introduced, may help determine whether current price levels are sustainable," Hansen said.
After the Reuters' report was published on Thursday, the premium of the LME cash contract over the three-month benchmark CMCU0-3 sank to a discount for the first time since late July. The discount was last at $13.5 a ton, indicating reduced concerns about a shortage of near-term supplies.
Among other LME metals, aluminium CMAL3 fell 1.5% to $3,308 a ton, zinc CMZN3 slid 2.2% to $3,962.50, lead CMPB3 eased 0.4% to $1,907, tin CMSN3 lost 0.2% to $54,845 and nickel CMNI3 was down 0.9% at $16,740.
Copper falls after Reuters report on tariff decision
Copper prices fell on Thursday after Reuters reported the White House has yet to decide on refined copper tariffs as officials assess concerns that higher prices could raise manufacturing costs.
Three-month copper on the London Metal Exchange CMCU3 fell 3.1% to $14,312 a metric ton by 1039 GMT after touching a record high of $14,875 earlier in the session.
