SINGAPORE — Prices of metals in London rose on Monday after US President Donald Trump rescinded his threat of a 50 percent tariff on imports from the European Union starting June 1, buoying market sentiment.
Three-month copper on the London Metal Exchange gained 1.19 percent to $9,614 per metric ton, while the most-traded copper contract on the Shanghai Futures Exchange nudged 0.73 percent higher to 78,400 yuan ($10,929.88) a ton.
On Sunday, Trump agreed to extend his deadline for trade talks until July 9 from the June 1 limit he set on Friday after European Commission President Ursula von der Leyen said the bloc needed more time to “reach a good deal”.
The supply of copper raw materials is currently tight, which may drive copper prices higher in the short term, said broker Hexun Futures.
Moreover, copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9 percent to 98,671 tons last week.
Still, tariff uncertainty may continue to restrict the performance of copper prices, said broker Everbright Futures.
Among other London metals, aluminum climbed 0.41 percent to $2,466 a ton, zinc firmed 0.56 percent to $2,712, lead added 1.22 percent to $1,994 and nickel rose 0.49 percent to $15,570. Tin firmed 0.89 percent to $32,665.
SHFE aluminum ticked up 0.15 percent to 20,195 yuan a ton, lead was up 0.36 percent at 16,835 yuan, while zinc eased 0.49 percent to 22,190 yuan, nickel edged 0.2 percent lower to 122,640 yuan, and tin fell 0.26 percent to 263,990 yuan.
