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US copper prices rise after Trump announces a date for tariffs, but remain below their peak

The price of U.S. Copper rose on Thursday, after U.S. president Donald Trump announced a 50% tariff that would begin on August 1. However, the prices remained below their previous record high due to an oversupply of metal in the country as well as uncertainty about details.

Trump announced on Tuesday that new tariffs would be imposed on copper. He announced Wednesday the date and confirmed it.

The COMEX copper contract that was most active at 0945 GMT rose 2.1% to $5.60 per lb, down from the record high of $5.90 reached on Tuesday.

Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said: "I believe that the spike high may be left to its own devices for a while." "The market is now left with plenty of supplies for the near future, and that's why premiums in New York shouldn't reflect the 50% tariff," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

There are many things that can happen over the next three months.

On Thursday, the premium for COMEX over LME was $2,690 per metric ton or 28 %, a slight drop from Tuesday's peak.

The traders who anticipated copper tariffs following the announcement of a probe in February shipped enough imports to cover a full year's worth this year.

Analysts predict that the COMEX premium is likely to ease in the coming months, as the stockpile slowly diminishes and the tariffs are a drag on demand.

A Shanghai-based metals expert at a futures firm said that the copper prices on the Shanghai Futures Exchange were under pressure due to expectations that the copper shipments into China would increase as some supplies will be redirected outside of the U.S.

The SHFE's most traded copper contract fell for the fifth consecutive day, falling 0.4% to 78.600 yuan per ton ($10,952.87 per ton) after reaching its lowest level since June 23.

The benchmark three-month copper price on the LME rose 0.5% on Thursday, after five consecutive days of declines. It now stands at $9,681.50 per ton.

Other metals include LME aluminium, which rose 0.6% to $2.613 per ton. Nickel gained 1.2% at $15,165. Zinc climbed 1.2% at $2.774. Lead was up by 0.1%, $2.057, and tin increased 1.2% at $33,675.

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(source: Reuters)