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London copper edges up, stronger dollar caps rise

London copper edges up, stronger dollar caps rise

The copper price in London rose on Thursday, as the markets watched inflows to the U.S. of industrial metals as demand increased ahead of possible tariffs. However, a stronger dollar slowed the gains.

As of 0241 GMT, the benchmark three-month price on the London Metals Exchange increased by 0.4% to $9 969 per metric ton. Prices reached $10,164.5 per metric ton in the last session. This is the highest price since June 7.

After U.S. president Donald Trump ordered an investigation into possible tariffs on imports of copper to rebuild U.S. copper production, traders have bid up the price of copper especially in New York.

Soni Kumari, ANZ Commodity Strategist said that Trump's announcement led to a frontloading of the market and it is now trying to price tariffs. There have also been a lot of inflows on the U.S. Market.

The price will drop once there is clarity on tariffs. Demand from the U.S.A. will also soften.

Trump announced a 25% import tariff for cars and light trucks, which will be implemented next week. This is a further extension of the global trade conflict.

The dollar index (which measures the greenback's value against six competitors) hovered around the three-week-high touched in the previous session.

The greenback price of commodities increases when the dollar is stronger.

Other metals include LME aluminium, which rose 0.1% to $2.610.5 per ton. Lead fell 0.6% to $2.080; zinc dropped 0.3% to $2.948; tin decreased 0.7% to $34,840, and nickel slipped 0.4% to $16,175 per ton.

The price of SHFE copper fell 1.06%, to 81.540 yuan (11,226.15) per ton. SHFE aluminium rose 0.6%, to 20,820 Yuan. Zinc dropped by 0.2%, to 24,110 Yuan. Lead increased 0.1%, to 17,595 Yuan. Nickel eased 0.05%, to 130.020 Yuan. Tin rose 0.2%, to 279100 Yuan. $1 = 7.2634 Chinese Yuan (Reporting and editing by Sumana Niandy)

(source: Reuters)