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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 markets tracked inflows to the U.S. of industrial metals due to increased demand ahead of possible tariffs. However, a stronger dollar slowed gains.

As of 0352 GMT, the benchmark three-month price on London Metals Exchange increased by 0.5% to $9973.5 per metric ton. Prices reached $10,164.5 per metric ton in the last session. This is the highest price since June 7.

Copper prices have been rising after U.S. president Donald Trump ordered an investigation into possible tariffs on imports of the metal to rebuild U.S. manufacturing.

Soni Kumari, ANZ Commodity Strategist said: "Trump's declaration has led to frontloading. The market is now trying to price tariffs. There have 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 against its six counterparts) 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 0.4%, to $2.616.5 per ton. Lead fell 0.5%, to $2.081.5; zinc dipped by 0.2%, to $2.949.5; tin dropped 0.4%, to $34,920, and nickel slipped 0.2%, to $16,220 per ton.

The price of SHFE copper fell 0.8%, to 81 740 Chinese yuan ($11 256.16) a ton. SHFE aluminium rose 0.7%, to 20,840 yuan. Zinc dropped by 0.3%, to 24,100 yuan. Lead increased 0.1%, to 17,600 Yuan. Nickel was up 0.04%, to 130,140 Yuan. Tin rose by 0.3%, to 279 450 Yuan. ($1 = 7.2618 Chinese Yuan) (Reporting and editing by Sumana Arora, Janane Venkatraman and Janane Nandy)

(source: Reuters)