SHANGHAI- Base metal prices in China fell sharply on Monday as the escalating global trade war fueled fears of a recession, with copper prices sliding to a more than three-month low.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) dropped 7 percent to 73,640 yuan per metric ton, marking its lowest level in over three months since January 3.
The benchmark three-month copper on the London Metal Exchange (LME) was down 1.9 percent to $8,614.5 per metric ton.
Top metals consumer China hit back on Friday with additional 34 percent tariffs on all US goods from April 10, after US President Donald Trump imposed a 34 percent tariff on most Chinese goods as part of his sweeping reciprocal tariff program.
“With China’s markets closed last Friday, which coincides with significant declines in LME base metals, we anticipated a sharp drop in China’s commodity prices today. Some even hit their lower limits as soon as trading began,” a base metals trader said.
“The retaliatory tariff makes us worry about trade war, which will impede economic growth globally,” a second trader said.
SHFE aluminum slid 4.5 percent to 19,515 yuan a ton, zinc lost 4.2 percent to 22,195 yuan, lead fell 2.4 percent to 16,810 yuan, while nickel was down 6.7 percent to 120,370 yuan, tin fell 6.5 percent to 273,680 yuan.
