Copper prices edged up 0.2% to $9,817 a ton on the London Metal Exchange, supported by a weaker dollar and rising tensions ahead of a looming US tariff. The Biden administration is set to implement a 50% levy on copper imports starting Friday, aiming to boost domestic production. However, full details on the policy remain unclear.
Chile, the largest copper supplier to the US, plans to seek an exemption during trade talks in Washington, but US officials insist the duties will apply globally without exceptions.
The August 1 deadline has disrupted global copper trade, previously prompting shipments to the US and draining global supplies. But the pressure has recently eased, with copper markets on both the LME and Shanghai Futures Exchange shifting into contango — indicating sufficient near-term supply.
Investors are also closely watching US-China trade negotiations, as the tariff truce between the two nations nears expiry in two weeks. A renewal would offer relief to global markets and improve economic relations between the two largest economies.
Elsewhere in metals, nickel fell 0.4% to $15,260 a ton, while iron ore held steady at $102.85 in Singapore.