LONDON — Copper prices fell on Friday as the dollar rose and physical buyers paused ahead of a week that could prove pivotal if it brings more clarity about the US copper import tariff and US trade agreements with other countries.
Three-month copper on the London Metal Exchange was down 1.0 percent to $9,772 a ton by 1600 GMT, breaking below the 21-day moving average at $9,802.
The most active COMEX copper futures, which hit a record high of $5.959 a lb on Thursday, were last down 0.9 percent at $5.752, trading at a 30 percent premium over the LME benchmark.
The premium remained below the 50 percent import tariff planned by President Donald Trump as the market is waiting for confirmation of the August 1 deadline and a list of the copper products to which the levy would apply.
“So much uncertainty remains around the tariff – will the announcement be delayed? Will there be exemptions?” said Alastair Munro, senior base metals strategist at Marex.
Chile, Canada and Mexico are the main copper suppliers to the US
Physical buying, which had been very active when the copper price was around $9,600 in mid-July, has been muted by current price levels, although the relatively light available stock in LME-registered warehouses is providing support ahead of September, a period of seasonal demand growth, Munro added.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 13 percent this week, the exchange said, to 73,423 metric tons, the lowest level since December.
The US has already reached trade agreements with Japan, Indonesia and the Philippines. Trump is heading to Scotland on Friday to open a new course at his golf club and meet with British Prime Minister Keir Starmer, while China-US trade talks are due to take place in Sweden next week.
LME aluminium fell 0.5 percent to $2,632 a ton, zinc lost 0.7 percent to $2,823, lead eased 0.4 percent to $2,015, tin dipped 1.3 percent to $34,050 and nickel was down 1.8 percent at $15,170.
