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US copper futures are rising as concerns about tariffs mount

The U.S. Copper prices continued to rise on Thursday, surpassing the London benchmark. Worries about US tariff plans and economic growth concerns for the entire market inflated the regional premium.

The most actively traded May copper futures at the U.S. Comex rose by 0.8% to $4.62 per lb. The London Metal Exchange's three-month copper fell 0.3%, to $9.435 per metric ton at 1120 GMT.

Nitesh Nitesh, commodity strategist at WisdomTree, said: "Trade talks are adding layers to uncertainty in the base metal markets."

China, which is the largest metal consumer in the world, urged the U.S. on Thursday to stop an investigation into possible new tariffs on imports of copper, and threatened to retaliate against any Chinese entities that were caught up with the levies.

On Wednesday, U.S. president Donald Trump lowered the prospects for the impending levies against Canada and Mexico as they were to take effect in April instead of March 4, as previously announced.

A White House official confirmed that tariffs on Mexican and Canadian products were still in place "as of now", causing further confusion about U.S. Trade Policy. Trump floated a proposal on Wednesday for a "reciprocal tariff" of 25% on European cars and goods.

The Comex copper contract premium has increased to $759 per ton, up from $633 on Tuesday.

Nickel gained 1.8%, while LME aluminium gained 0.5%, to $2.644.50 per ton. Zinc also rose to $2.840.50, and zinc to $2.840.50. Lead fell 0.3%, to $2.004.

LME Tin fell 1%, to $32,030. The April contract at the Shanghai Futures Exchange dropped by 3.7%. Analysts attributed this to the expectation that major Myanmar supplier Wa state could resume production.

On Wednesday, a notice purporting to come from the Wa State Industrial Minerals Management Bureau circulated on Chinese social media. It outlined the process for obtaining permits for mining and exploring. (Reporting and editing by David Goodman.)

(source: Reuters)