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METALS-Copper adds to losses, slides to eight-month low in China on trade war
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METALS-Copper adds to losses, slides to eight-month low in China on trade war
Apr 9, 2025 3:09 AM

(Adds analyst comment, updates prices, changes dateline)

By Eric Onstad

LONDON, April 9 (Reuters) - Copper extended its decline

on Wednesday, with Chinese prices touching an eight-month low,

as buying dried up from bargain hunters after still higher U.S.

tariffs were imposed on top metals consumer China.

Benchmark three-month copper on the London Metal

Exchange (LME) was down 0.1% to $8,650.50 per metric ton by 0940

GMT.

LME copper has tumbled by 20% since touching its highest in

more than nine months on March 26 at $10,164.50.

"There's clearly been some dip buying from China, but I

think the problem is that the prospect of a U.S. recession is

going up and up," said Dan Smith, head of research at

Amalgamated Metal Trading.

U.S. President Donald Trump's "reciprocal" tariffs on dozens

of countries took effect on Wednesday, including massive 104%

duties on Chinese goods, deepening his global trade war and

spurring more widespread selling across financial markets.

"I think everyone was hoping that Trump would blow back a

bit in terms of his aggressive tariffs, but I think it's going

to take a while for this to shake out," Smith said.

"It's like a falling knife at the moment, so I wouldn't want

to be trying to buy the dips myself."

The most-traded copper contract on the Shanghai Futures

Exchange (SHFE) dropped 1.8% to 72,130 yuan ($9,814) per ton,

hovering near its lowest since August 2024.

Industrial users who need physical copper in China have been

on the market to take advantage of the weaker prices.

"Due to Trump's unpredictable tariffs, copper prices might

decrease further, yet the current price below 75,000 yuan still

encourages some fabricators to procure," a base metals trader

said.

The Yangshan copper premium , which reflects

demand for copper imported into China, has more than doubled

since late February to $87 a ton, its strongest since December

2023.

Among other metals, LME aluminium lost 1.2% to

$2,320.50 a ton, nickel gave up 0.3% to $14,145, zinc

shed 0.3% to $2,554.50, lead fell 1.0% to

$1,850.50, and tin slid 2.2% to $31,890.

($1 = 7.3498 Chinese yuan renminbi)

(Reporting by Eric Onstad

Additional reporting by Violet Li and Lewis Jackson in Beijing)

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