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SHFE copper drops as US tariffs are seen to be hitting China harder

The Shanghai Futures Exchange saw copper prices fall more than in London, as analysts say that China is likely to bear the brunt from the United States' decision imposing a 50% tariff on imported copper.

By 0708 GMT, the most traded copper contract on the SHFE had fallen for the fifth consecutive day, down 0.39% to 78,600 Yuan ($10,952.87 per metric tonne). On Thursday, it touched 78.190 yuan ($10,952.87), the lowest level since June 23.

On the other hand, copper for three months on the LME recovered on Thursday, after five consecutive days of losses. It was up 0.36% to $9,665.5 per ton.

On Wednesday, the most active COMEX Copper Futures contract was hovering near a new record high. Its premium over LME copper also jumped by 26%.

According to SHMET, an institution that conducts metals market research, China, which is the world's biggest copper producer, could be hit harder by U.S. copper tariffs. A Shanghai-based metals analysts at a futures firm said that the tariff move could boost copper shipments into China, as some supplies will be redirected outside of the U.S.

She also added that COMEX stocks Prices could be affected by the rising production from China and Democratic Republic of Congo, as well as the high levels of SHFE.

On Thursday, LME Nickel gained 1.14%, to $15,150 a ton. Tin was up 0.91%, to $33,585. Zinc rose 0.86%, to $2766, while lead gained 0.49%, to $2066, and aluminum gained 0.4%, to $2607.

SHFE nickel increased 1.41%, to 121140 yuan per ton. Zinc was up 1.38%, at 22,385 Yuan. Tin rose 1.2%, to 266,740 Yuan. Aluminium was up 0.9%, at 20,700 Yuan. Lead was up by 0.17%, to 17,230 Yan.

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(source: Reuters)