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METALS-Copper rises with support from weaker dollar, decline of available LME stocks
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METALS-Copper rises with support from weaker dollar, decline of available LME stocks
Mar 11, 2025 4:41 AM

(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

)

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