NEW DELHI- Copper prices in London edged lower on Wednesday as concerns over looming US tariffs weighed on sentiment but losses were limited as markets tracked some weakness in the dollar.
The benchmark three-month copper on the London Metals Exchange (LME) eased 0.6 percent to $10,050 a metric ton.
The focus is on potential reciprocal tariffs that the Trump administration might adopt on April 2, causing some nervousness in the market.
The dollar took a breather on Wednesday, with weak US confidence data and concerns about the effect of sweeping tariffs on US growth putting the brakes on a recent bounce.
A softer dollar makes commodities priced in the US currency less expensive for buyers using other currencies.
Last month, US President Donald Trump ordered a probe into potential new tariffs on copper imports to rebuild US production of the metal critical to electric vehicles, military hardware, power grids and many consumer goods.
Markets have been tracking the movement of the industrial metal to the US ahead of a decision.
“I agree there is significant diversion of units occurring towards the US and stockpiles there are rising,” said Natalie Scott-Gray, a senior metals analyst at StoneX.
“Much of this material will be coming from usual sources i.e., Chile or Canada into the country… Meanwhile, China is at a shortage of material, as units divert to the US from producers like Chile, so they need material and could be taking it from the LME or off-exchange sources.”
