SHANGHAI- Copper prices hovered around more than three-month highs on Monday, after US President Donald Trump announced plans for reciprocal tariffs, which will not be immediately implemented.
Three-month copper on the London Metal Exchange steadied on Monday, edging up 0.1 percent to $9,481.5 a ton by 0127 GMT, its highest since November 8.
Shanghai Futures Exchange copper slid 0.7 percent to 77,270 yuan ($10,659.70), also its highest in more than three months.
Short-covering on the London Metal Exchange (LME) ahead of the expiry of contracts amid expectations that US tariffs will be imposed on copper triggered a sharp move in a key spread last week.
Worries that Trump may impose tariffs on copper had spurred traders and investors to buy copper on the US COMEX exchange and sell on the LME
Meanwhile. the premium for US Comex copper futures over the LME contract rocketed to a record high last week.
“Extreme dislocations emerged on Friday, with a record gap between US and global prices. Copper on New York’s Comex spiked, with the premium over those on the London Metal Exchange reaching as high as USD1,200/t during the session. This was more than 10 percent of the benchmark LME price.” ANZ Research said.
Trump’s plans to impose reciprocal tariffs on every country taxing US imports have stoked concerns of a major global trade war.
Trump threatened duties on copper without providing further details.
Three-month aluminum on the LME was down 0.1 percent to $2,636 a ton.
Zinc was down 0.1 percent to $2,838.5, tin was down 1.0 percent at $32,235, lead added 0.2 percent to $1,987.5 and nickel edged 0.2 percent lower to $15,445.
SHFE aluminum rose 0.1 percent to 20,665 yuan a ton, SHFE copper slid 0.7 percent to 77,270 yuan, nickel was down 0.4 percent to 123,640 yuan, zinc slid 1.0 percent to 23,680 yuan, lead was flat at 17,170 yuan and tin was up 0.2 percent to 261,540 yuan.
