Copper falls after report of White House hesitancy over tariff plan

Among other LME metals, aluminium CMAL3 fell 1.2% to $3,316 a ton in official activity, zinc CMZN3 slid 2.3% to $3,960, lead CMPB3 eased 0.7% to $1,902, tin CMSN3 lost 0.6% to $54,900 and nickel CMNI3 was down 0.9% at $16,750.

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 15% 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 fell to $9.5 a ton from $58 a week ago, indicating reduced concerns about a shortage of near-term supplies.

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.