BENGALURU- Most base metals eased on Monday, as the US dollar firmed on US tariff worries after President Donald Trump’s Colombian threat, while investors looked forward to the Federal Reserve policy meeting for clues on the interest rate trajectory.
Three-month copper on the London Metal Exchange (LME) fell 0.7 percent to $9,214 a metric ton, after scaling its highest since Nov. 12 on Friday. The most-active copper contract on the SHFE eased 0.3 percent to 75,240 yuan ($10,360.07) a ton.
The dollar index was up 0.2 percent, makes it more expensive for holders of other currencies to buy greenback-priced commodities.
Last week, tariff concerns had eased slightly after Trump said a trade deal with China was possible. However, those fears resurfaced after Trump said on Sunday he would impose sweeping measures on Colombia, including tariffs and sanctions.
The Fed will likely hold interest rates steady when it concludes its two-day meeting on Wednesday, and resume cutting in June, according to the CME Group’s FedWatch Tool.
LME aluminum eased 0.5 percent to $2,628.5 and SHFE aluminum was down 0.3 percent to 20,215 yuan a ton.
Elsewhere, the premium for aluminum shipments to Japanese buyers for January to March was set at $228 a metric ton, the highest in about 10 years, driven by supply fears amid stronger overseas premiums, five sources said.