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US reciprocal tariff plan benefits metals; Copper hits three-month highest

Base metals prices rose on Friday, as investors expected that U.S. president Donald Trump's plans to impose reciprocal tariffs on global goods would not be implemented until April. Copper prices reached three-month highs.

The price of three-month copper at the London Metal Exchange increased 1.3% by 813 GMT to $9,609 per metric ton, its highest level since November 8.

The Shanghai Futures Exchange's most active copper contract gained 0.9%, to 78.090 yuan per ton ($10,719.97), the highest level since November 6.

The premium of U.S. Comex Copper Futures over LME Contracts reached a new record earlier this week.

The treatment charges that miners pay smelters to convert raw materials into metal have declined, which indicates a shortage of material.

Fastmarkets' copper TC/RC Index hit record lows on Wednesday at minus 12.50 cents per ton, and minus 1.25 cts per lb. This compares to plus $20 per ton a year earlier.

"The metal continues shrugging off the uncertain economic background, driven by U.S. Tariffs and China's sluggish real estate sector," ANZ Research stated in a report.

China's industrial production and retail sales are both up. Manufacturing is also back on the growth track, thanks to government initiatives.

Trump's plans for reciprocal tariffs to be imposed on countries that tax U.S. imports has stoked fears of a global war in trade.

Trump ordered officials from the Departments of Commerce and Economics to review reciprocal tariffs with countries that impose tariffs on U.S. products and return their recommendations to him by April 1.

The LME's three-month aluminium was up by 1.0% to $2,629.5 per ton.

Lead increased by 0.6% at $1,999.5, zinc was up by 16% at $2,891, and nickel was up by 0.9% to $15,510.

SHFE aluminium increased by 0.7%, to 20,710 Yuan per ton. SHFE copper was up by 0.9%, to 78.090 Yuan. Nickel was up 0.3%, at 124.690 Yuan. Zinc was up 1.3%, to 24,125 Yan, while lead was unchanged at 17,130 Yan, and tin rose 1.4%, to 263,020 Yan.

(source: Reuters)