Copper extends losses, driven by uncertainties over US tariffs

Copper prices extended losses on Monday as uncertainty over potential U.S. tariffs on refined copper kept traders cautious, while broader risk aversion deepened across base metals. Three-month copper on the London Metal Exchange was down 0.34% at $14,191 a metric ton by 0722 GMT, after touching $14,136, the lowest since September 2. The most-traded copper contract on the Shanghai Futures Exchange dropped 0.75% to close at 107,840 yuan ($16,079.68) a metric ton. It tumbled to 107,680 yuan earlier in the session, also the lowest since September 2. Copper sold off sharply on Thursday after Reuters reported that the White House had yet to decide whether to impose tariffs on refined copper imports, as officials weigh higher manufacturing costs against efforts to encourage more domestic supply. Analysts at Chinese broker Everbright Futures said traders remained focused on Section 232 tariff decision, which is expected to come on September 28. Shifts in the White House's stance have increased uncertainty over the inventory arbitrage trade, leaving the broker "cautious and bearish" on copper in the near term. COMEX copper lost more than 4% last week, while stocks in COMEX warehouses declined on Friday for the first time since mid-June, slipping 0.02% from a day earlier to 767,504 short tons, or 696,268 metric tons. U.S. exchange stocks had risen steadily amid tariff-driven inflows into the country. Broader sentiment was also weak as Asian equities fell and oil prices rose more than 2% on renewed Middle East supply concerns, adding to inflation worries ahead of the U.S. Federal Reserve policy meeting this week. The broader base metal market was mostly under pressure. Elsewhere on the LME, aluminium rose 0.25%, while zinc fell 0.52%, lead dropped 0.98%, nickel slipped 0.21% and tin lost 1.21%. On the SHFE, aluminium fell 0.64%, zinc dropped 1.94%, lead declined 2.07%, nickel lost 1.55% and tin tumbled 3.81%.