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As markets digest US tariffs, copper prices are ranging as they wait for clarity

The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) were both range-bound Friday. After an initial shock following the U.S. announcement that it would impose a 50% tariff starting August 1, the market was waiting for more details. As of 0701 GMT, the LME's three-month copper was down 0.09% to $9,691.5 a metric ton. The contract is down 1.75% this week and could be headed for a second consecutive weekly decline.

The Shanghai Futures Exchange's most traded copper contract edged up 0.05% to 78.430 yuan (10,937.87) but ended the week with a decline of 2.05% after gains the previous two weeks.

After President Donald Trump announced tariffs to promote domestic development in a key defense, electronics and automobile industry, the copper prices have stabilized for now.

The metals analyst of a Beijing futures company, who requested anonymity, said that "uncertainties have remained" such as the copper products included in the tariff structure, whether or not the 50% is final, whether it can be adjusted or if there will be a delay to the implementation date.

The COMEX premium was $2,615 per ton in the previous session. This is 27% more than the LME, but it has dropped slightly since its peak.

So far in this year, traders have sent roughly the equivalent of a full year's supply of copper to America.

Analysts said that with so much copper being shipped to the U.S. a 50% increase in COMEX-LME premium is not realistic. However, a 40% increase is possible if the tariff goes into effect as announced.

LME lead dropped 0.86% on Friday to $2,026.5 per ton and tin fell 0.76% to 33,305.

SHFE nickel rose 1.23%, to 121 390 yuan per ton. Zinc was up 0.43%, at 22,380, whilst aluminium was up 0.12%, at 20,695; lead dropped 0.81%, to 17,075, while tin fell 0.4%, to 263,940.

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(source: Reuters)