LONDON- Copper prices fell on Friday under pressure from a stronger dollar, while mounting worries that the United States may impose new import tariffs on the metal raised the New York futures premium over the London price to a record high.
Benchmark three-month copper on the London Metal Exchange (LME) fell 0.8 percent to $9,854 a metric ton. The contract hit its five-month high of $10,046.50 on Thursday.
Most active copper futures on the US Comex exchange were last down 0.1 percent at $5.1085 a pound. They hit a 10-month high on Thursday.
About a month ago, US President Donald Trump ordered a probe into potential new tariffs on copper imports with the aim to rebuild US production of the metal. Technically, the probe can take up to nine months.
“Supply concerns over potential tariffs have played out on the CME-LME spread, with the US heavily reliant on copper imports,” said Natalie Scott-Gray, senior metals analyst at StoneX.
US imports about 40 percent of its needs in copper, including from Canada, targeted by Trump’s tariff policy. US 25 percent tariffs on steel and aluminum products took effect last week. Trump has also said that his “reciprocal tariffs” to bring US tariffs to other countries’ levels will take effect on April 2.
The premium of the Comex contract over the LME one hit a record high of $1,414 per ton, or 14 percent on Friday. StoneX estimates that it would rise to $2,000 if the US decides to impose 25 percent copper tariffs.
