Shanghai copper ticks up as countries warn against low processing fee; trade woes persist
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Shanghai copper edged up on Thursday, as investors focused on supply risks with several countries warning about tumbling processing fee, and U.S.-China trade tensions in the run up to a high-stakes meeting between leaders from both countries.
The most active copper contract on Shanghai Futures Exchange closed daytime trading up by just 0.11% to trade at 85,050 yuan ($11,938.18) per metric ton.
The benchmark three-month copper on the London Metal Exchange down 0.13% to $10,627 a ton, as of 0703 GMT.
Japan, Spain and South Korea on Wednesday voiced concern over plunging copper treatment and refining charges (TC/RCs), saying the drop in a key revenue source threatens sustainability in the copper sector.
The three copper importers warned that persistently low or negative TC/RCs could curb refined output by eroding profitability.
The warning came to deepen concerns over refined copper supply due to tumbling TC/RCs, lending some support to the red metal.
Investors are also focusing on the fresh developments in the China-U.S. trade tensions.
Top U.S. officials, including Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, on Wednesday accused China's rare earth export controls of threatening supply chains and urged Beijing to reverse course, warning of deeper decoupling if it presses ahead.
They stressed Washington was not seeking escalation and said China could still pull back, while Beijing defended the measure, saying it does not constitute an export ban.
The remarks marked the latest development ahead of a possible meeting later this month between U.S. President Donald Trump and Chinese President Xi Jinping, though the recent flare-up in tensions has left questions over whether the meeting will take place.
Elsewhere among SHFE base metals, aluminium gained 0.48%, nickel closed up by 0.21%, lead rose 0.26%, tin increased 0.34%, zinc posted sole drop down by 0.25%.
Among other LME metals, aluminium added 0.73%, zinc gained 0.2%, nickel climbed 0.34%, lead nudged up 0.1%, while tin rose 0.5%.
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