Copper Prices Tumble Amid Uncertainty Over US Tariffs

Copper prices continued to slide on Monday, weighed down by uncertainty over potential US tariffs on refined copper. The London Metal Exchange saw three-month copper fall 0.20% to $14,212 a metric ton, while the Shanghai Futures Exchange reported a 0.39% drop in its most-traded copper contract to 108,240 yuan ($16,139.57) a metric ton.

The uncertainty stems from the White House's delay in deciding whether to impose tariffs on refined copper imports. Analysts at Everbright Futures said traders are focused on the Section 232 tariff decision, which is expected on September 28. This has left them 'cautious and bearish' on copper in the near term.

The broader base metal market was under pressure, with aluminium rising 0.29% and nickel gaining 0.10%, but zinc falling 0.53%, lead dropping 0.74%, and tin losing 0.64%. The shift in the White House's stance has increased uncertainty over inventory arbitrage trade.

The US exchange stocks had risen steadily amid tariff-driven inflows into the country, but COMEX copper lost more than 4% last week, with stocks declining on Friday for the first time since mid-June. Broader sentiment was weak due to Asian equities falling and oil prices rising over 2%, adding to inflation worries ahead of US Federal Reserve and Bank of Japan policy meetings this week.