LONDON- Copper prices retreated on Friday on concern about demand in China after inventories rose and on uncertainty over possible US tariffs.
Three-month copper on the London Metal Exchange (LME) was down slightly at $9,561.50 a metric ton, having touched its highest level in three months a week ago.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange (SHFE) climbed 13 percent over the past week, data showed on Friday, having soared by 162 percent since late January.
Stocks rise in China on a seasonal basis around the lunar new year holidays, but the data added to disquiet about Chinese demand after data earlier in the week showed new home prices stalled in January.
The Chinese property sector is a key demand driver for industrial metals.
SHFE copper fell 0.5 percent to 77,000 yuan a ton.
“In China, the house prices were still pretty rubbish and the demand upswing on copper after the new year holidays has been mild. People are saying that it’s being held back a bit by higher prices,” said Dan Smith, head of research at Amalgamated Metal Trading.
LME copper prices have gained 9 percent so far this year.
“The end of war in Ukraine would be quite bullish overall, but then offsetting that is all the Trump turmoil around tariffs. So you’ve got those two dynamics which are very difficult to quantify,” Smith added.
US President Donald Trump said he would unveil fresh tariffs over the next month or sooner, adding lumber and forest products to previous plans for duties on imported cars, semiconductors and pharmaceuticals.
