(Rewrites throughout, adds comment and changes dateline from
Singapore)
By Pratima Desai
LONDON, July 8 (Reuters) - Copper prices held firm on
Tuesday, supported by a lower dollar while gains were capped by
worries about economic slowdown and demand growth caused by U.S.
President Donald Trump's tariffs and rising inventories, traders
said.
Benchmark copper on the London Metal Exchange (LME)
was up 0.1% at $9,835 a metric ton at 1030 GMT towards the
three-month high of $10,020.50 a ton hit last week.
The sliding U.S. currency has made dollar-priced metals
cheaper, potentially boosting demand for industrial metals and
copper.
The United States sent formal notices to 14 countries on
Monday announcing new tariffs ranging from 25% to 40%, set to
take effect on August 1, postponed from July 9.
Trump also warned an extra 10% tariff could be imposed
on BRICS nations including Brazil, Russia, India and China if
they pursue what he described as "anti-American" policies during
their summit in Brazil.
Stocks of copper in LME-registered warehouses
were at 102,500 tons, having climbed 13% or 11,875 tons since
June 27 and easing concern about availability on the LME market.
But traders say deliveries need to be larger.
Cancelled warrants for metal earmarked for delivery at
36% indicate another 37,100 tons of copper are due to leave the
LME system and large warrant holdings are still dominating trading in nearby contracts.
The premium for buying copper tomorrow and selling it the
day after - known as tom-next - has flared out to $13 a ton
ahead of settlement next week, when short position
holders will have to cut or rollover their contracts to sell.
Meanwhile, aluminium inventories in LME
storage have risen 47,450 tons to 384,350 tons since June 25 and
helped reverse the premium for the cash over the three-month
forward into a discount .
Three-month aluminium rose 0.3% to $2,582, zinc
gained 0.8% to $2,706, lead was up 0.4% at
$2,045, tin added 0.4% to $33,410 and nickel slipped
0.3% to $15,130 a ton.