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Prices of copper in London and China are near their 3-week-lows due to the looming US tariff of 50%

The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw copper prices drop on Thursday. They were near their lowest level in three weeks, due to President Donald Trump’s plan to impose a 50% tariff on imported copper starting August 1.

Trump announced a 50% tariff for copper on Wednesday, stating on social media the tariff would take effect on August 1, and that it was a decision made following a national assessment.

The LME's three-month copper rose 0.19%, to $9,649 a metric ton, by 0111 GMT. Meanwhile, the SHFE's most traded copper contract fell 0.75%, to 78.320 yuan. Both contracts were near their lowest levels since June.

The COMEX copper contract that was the most active on Wednesday hovered around its record high and its premium over the LME copper increased to 26%.

A futures analyst in Shanghai commented: "Traders are very sensitive and alert. Only limited cargoes can still make it to the U.S. by August 1. Therefore, most have stopped betting on higher LME and SHFE price premiums and have stopped using the premium. COMEX inventories The analyst stated that copper prices are at a seven-year high. In the next few days, supplies of copper may be shipped to other countries, which will ease regional supply shortages.

LME aluminium rose 0.27%, to $2.603.5 per ton. Nickel was up 0.24%, to $15.015, while tin was up 0.2%, to $33,350. Zinc increased by 0.2%, to $2.748, and Lead advanced by 0.12%, to $2.058.5.

SHFE aluminium rose 0.93% at 20,705 yuan per ton. Zinc was up 0.84% to 22,265 yuan. Tin was up 0.5% to 264,890 yuan. Lead gained 0.26% at 17,245 yuan. Nickel was up 0.12% at 119,600.

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Data/Events (GMT) 0600 Germany HICP final YY June 200900 Germany, France and UK Q3 Comprehensive Risk 1230 Initial US Jobless Clm, 5 July (w/e) 1430 EIA Nat Gas Bcf, 4 July (w/e) 1430 Nat Gas-EIA implied flow, 4 July (w/e)

(source: Reuters)