BENGALURU- London copper inched higher on Wednesday, but lingered near a three-week low hit in the last session as US President Donald Trump’s threat to levy tariffs on copper imports kept the market under pressure.
Benchmark copper on the London Metal Exchange (LME) ticked up 0.2 percent to $9,005.5 a metric ton. The metal touched its lowest since Jan. 8 in the previous session.
Tariff concerns have resurfaced after Trump said on Monday he would impose tariffs on aluminum and copper – metals needed to produce US military hardware – as well as steel, to entice producers to make them in the United States.
The United States imports 38 percent of its copper needs and is highly dependent on aluminum imports, with supplies from other countries such as Canada and Mexico covering 82 percent of its annual consumption, according to BNP Paribas.
The White House said on Tuesday that Trump still plans to issue 25 percent tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China.
Meanwhile, the Federal Reserve will conclude its two-day policy meeting later in the day, where it is expected to hold interest rates steady, according to the CME Group’s FedWatch Tool.
Three-month aluminum was down 0.1 percent at $2,569.5. Zinc fell 0.1 percent to $2,771.5 a ton, while lead gained 0.2 percent to $1,939.5, tin was up 0.4 percent to $29,790 and nickel rose 0.3 percent to $15,485.
The Shanghai Futures Exchange will be closed until Feb. 4 for the Lunar New Year holiday.