Copper falls after report of White House hesitancy over tariff plan
XLB•Premium narrows and other LME metals decline
After the Reuters' report was published on Thursday, the premium of the LME cash contract over the three-month benchmark CMCU0-3 fell to $11 a ton from $58 a week ago, 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 2.8% to $3,938, lead CMPB3 eased 0.6% to $1,902. Tin CMSN3 and nickel CMNI3 lost 1.1% to $54,650 and $16,700, respectively.
($1 = 6.7062 Chinese yuan renminbi)
Copper prices fall 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 3.2% to $14,300.50 a metric ton by 1307 GMT after touching a record high of $14,875 earlier in the session.
COMEX October copper futures HGc2 were last down 4.7% to $6.504 per lb, or $14,339 per ton, slashing the premium over the LME prices. 0#LMECMXCU:
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 lost 2.9% to 108,500 yuan ($16,179) a ton in the night session.
Trump administration under pressure as copper flows and stocks build
The U.S. administration under President Donald Trump is under pressure ahead of midterm 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 the Reuters report.
