SHANGHAI — Prices of most base metals in London edged lower on Thursday as the temporary US-China tariff truce prompted caution, with concerns about a potential global recession affecting metals demand.
Benchmark copper on the London Metal Exchange (LME) fell 0.8 percent to $9,532 a metric ton.
On Wednesday, China paused some non-tariff measures taken in April against several US entities – 17 on its unreliable entity list and 28 on its export control list, the commerce ministry said.
The two countries have agreed to reduce the tit-for-tat tariffs and implement a 90-day pause on actions, while Washington said it would cut the “de minimis” tariff for low-value shipments from China to 30 percent.
“The trade tariff conflict is moving in a positive direction, alleviating concerns about a global recession,” a trader said.
“However, trade negotiations are complex and lengthy, so we cannot confidently predict that things will return to normal after the 90-day truce. It’s possible that we might experience a situation similar to April, when heightened trade tensions negatively affected the outlook for metals.”
