Copper falls after report of White House hesitancy over tariff plan

Copper prices fell on Thursday after Reuters reported the White House has yet to decide on refined copper tariffs as officials assess concerns that higher prices could raise manufacturing costs. Three-month copper on the London Metal Exchange fell 3.2% to $14,300.50 a metric ton by 1307 GMT after touching a record high of $14,875 earlier in the session. COMEX October copper futures were last down 4.7% to $6.504 per lb, or $14,339 per ton, slashing the premium over the LME prices. The most-traded copper contract on the Shanghai Futures Exchange lost 2.9% to 108,500 yuan ($16,179) a ton in the night session. The U.S. administration under President Donald Trump is under pressure ahead of midterm elections in November to demonstrate that its policies are lowering costs for American consumers and businesses. "That update most certainly sent the cat in among the pigeons," said Ole Hansen, head of commodity strategy at Saxo Bank, referring to the Reuters report. Copper, widely used in power and construction, has gained 15% this year as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, stoking concerns over availability in traditional consuming regions. Copper stocks in the COMEX warehouses have reached a record high of 696,259 tons after months of inflows. "Whether these inventories ultimately become stranded, or eventually return to the global market if no tariffs are introduced, may help determine whether current price levels are sustainable," Hansen said. After the Reuters' report was published on Thursday, the premium of the LME cash contract over the three-month benchmark fell to $11 a ton from $58 a week ago, indicating reduced concerns about a shortage of near-term supplies. Among other LME metals, aluminium fell 1.5% to $3,308 a ton, zinc slid 2.8% to $3,938, lead eased 0.6% to $1,902. Tin and nickel lost 1.1% to $54,650 and $16,700, respectively.