(Recasts, adds analyst comment and changes dateline to London)
By Polina Devitt
LONDON, March 11 (Reuters) - Copper prices rose on
Tuesday as support from a weaker dollar and a decline in
available inventories in the London Metal Exchange (LME) system
put the worries about U.S. import tariff policy on pause.
Three-month copper on the LME added 1.1% to
$9,630.50 a metric ton by 1106 GMT. The metal, used in power and
construction, fell on Monday amid a broad market sell-off.
As tariffs are bearish for copper and other growth-dependent
metals in the context of potentially slowing global growth and
keeping inflation higher for longer, the market
focus is on U.S. consumer price index data due on Wednesday.
"With growth in the U.S. likely to slow on the back of
tariffs and China (top metals consumer) already struggling to
revive its economy, demand for copper and other industrial
metals is likely to weaken," said Ewa Manthey, a commodities
analyst at ING.
Copper hit a four-month high of $9,739 last week after U.S.
President Donald Trump granted exemptions for automakers from
25% tariffs on Canada and Mexico for one month.
Wednesday is the launch date previously set by the Trump
administration for U.S. 25% import tariffs on aluminium and
steel. The US imports 80% of its needs in aluminium, mainly from
Canada and Mexico.
If implemented tomorrow, tariffs would result in higher
aluminium prices in the U.S. with a significant upside risk to
the U.S. Midwest premium, which is already elevated,
Manthey said.
Trump also previously ordered a probe into possible new
tariffs on copper which continues and keeps the premium between
the most active U.S. Comex copper futures and the LME
contract elevated.
Suggesting that part of the market was boosting supplies to
the U.S., LME daily data showed on-warrant copper stocks in
LME-registered warehouses fell to 136,300 tons, lowest since
mid-June, after 11,675 tons of new cancellations.
Among other metals, LME aluminium added 0.3% to
$2,701 a ton, lead was down 0.1% at $2,047.50, tin
rose 0.3% to $32,730 and nickel fell 0.6% to
$16,450.
Zinc rose 1.5% to $2,899 as LME on-warrant stocks
fell to 94,700 tons, their lowest since November 2023, after
42,575 tons of fresh cancellations.
(Reporting by Polina Devitt in London; Editing by Shreya Biswas
)