METALS-Copper drifts lower on confusion over tariffs and economic growth

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METALS-Copper drifts lower on confusion over tariffs and economic growth

, Reuters - 6:16 AM ET 4/15/2025 International

(Updates prices at 1600 GMT, adds Citi comment)

By Eric Onstad

LONDON, April 15 (Reuters) - Copper prices slipped on Tuesday as uncertainty over tariffs imposed by U.S. President Donald Trump and their impact on global growth halted a three-session run of gains.

Three-month copper on the London Metal Exchange (LME) was down 0.2% at $9,166.50 a metric ton by 1600 GMT. In the previous session, the contract hit $9,271.50 for its highest since April 4.

"This is still a very stressful market where we're moving from one headline to the next," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The U.S. removed smartphones and other electronics from its tariffs on China over the weekend and Trump suggested on Monday that he might grant exemptions on auto-related levies already in place.

"The market is perhaps starting to call Trump's bluff. He's not really going to carry out all of them because it's probably starting to dawn on him the negative impact on the U.S. economy in the short term," Hansen said.

Citi said in a note it remains bearish over the next three to six months because it expects significant weakening of physical copper consumption and manufacturing activity because of U.S. tariffs already imposed.

After Trump imposed tariffs on aluminium and steel and ordered an investigation into possible copper duties, traders have been trying to price in the impact on the copper market.

U.S. Comex copper futures eased by 0.1% to $4.63 per lb, bringing the Comex premium over LME to $1,037 a ton, up from $572 last Thursday.

The most traded copper contract on the Shanghai Futures Exchange (SHFE) added 0.2% to 75,970 yuan ($10,394.03) a ton.

Helping to support the market was declining copper inventories on SHFE , which have shed 32% since February 24.

Also boosting sentiment were expectations that top metals consumer China will launch more stimulus measures to bolster consumption and cushion the economic impact of an escalating China-U.S. trade war.

LME aluminium was little changed at $2,375 a ton, zinc eased 0.6% to $2,621, lead dipped 0.2% to $1,912.50 and tin gave up 0.8% to $31,035 while nickel advanced 1.6% to $15,545. ($1 = 7.3090 Chinese yuan) (Reporting by Eric Onstad Editing by David Evans, Kirsten Donovan and David Goodman)

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