Shanghai copper eases

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BENGALURU- Shanghai copper prices eased on Wednesday on fears of an escalation in trade tensions between the United States and top metals consumer China.

The most-active copper contract on the Shanghai Futures Exchange fell 0.2 percent to 75,370 yuan ($10,347.76) a metric ton. China’s markets were closed from Jan. 28 to Feb. 4 for the Lunar New Year holidays.

China on Tuesday imposed tariffs on some US imports in a swift response to the country’s duties on Chinese goods, raising the stakes in a showdown between the world’s top two economies, even as President Donald Trump offered reprieves to Mexico and Canada.

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“This means that China’s exports to the US will be subject to an additional tariff of 10 percent. This should not lead to any major distortions: only just below 4.5 percent of China’s copper and aluminum exports go to the US “ Commerzbank said in a note.

The retaliatory measures from China included stricter export regulations for tungsten and four other critical metals.

Market focus will be on whether China announces further stimulus measures to boost its economy amid concerns about the tariff dispute with the United States and persistent worries about slowing demand.

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