Uncertainty over US tariffs keeps copper trading in a tight range

Copper prices were little changed on Tuesday, trading in a tight range for a third straight session, as uncertainty over potential US import tariffs and concerns about inflation driven by higher oil prices kept risk sentiment subdued. Benchmark three-month copper on the London Metal Exchange was up 0.1% at $14,353 a metric ton by 0955 GMT. Copper, widely used in the power and construction sectors, has risen 55% since Donald Trump returned to the US presidency in January 2025, despite global demand falling 0.5% to 27 million metric tons, Panmure Liberum analyst Tom Price said in a note. Supporting prices is a shortage of copper scrap in China, which is increasing the country's need for refined copper through domestic inventory drawdowns, just as the US continues to import metal and build stocks ahead of potential tariffs, Goldman Sachs said. The bank's analysts expect copper prices to average $15,400 in 2027, up from $14,700 at the end of 2026. The Yangshan copper premium , a key indicator of China's demand for imported copper, climbed 0.7% to $138 a ton, its highest level in almost four years. Meanwhile, Comex copper inventories were last at a record high of 718,199 metric tons, up from 87,241 in January 2025. The White House has yet to decide on tariffs on refined copper, with the administration increasingly focused on affordability ahead of November's midterm elections, Reuters reported in September, citing people familiar with the matter. Chinese broker Everbright Futures said cautious purchasing at high prices and uncertainty over US tariffs could keep copper prices range-bound in the near term. BHP Group and Anglo American reported declines of 19% and 5%, respectively, in quarterly copper production due to disruptions in Chile, but both companies maintained their full-year output guidance. Among other LME metals, aluminium fell 0.8% to $2,993, zinc lost 0.7% to $3,688, lead was steady at $1,894.50, while tin gained 0.1% to $50,775 and nickel rose 0.5% to $15,600.