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METALS-Rising inventories and a stronger dollar keep copper under pressure
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METALS-Rising inventories and a stronger dollar keep copper under pressure
Jul 17, 2025 3:48 AM

(Adds analyst comment, updates prices, changes dateline)

By Polina Devitt

LONDON, July 17 (Reuters) - Copper prices edged down on

Thursday as the dollar strengthened and stocks in the Asian

warehouses registered with the London Metal Exchange kept on

rising in anticipation of the U.S. 50% import tariff for the

metal.

Three-month copper prices on the LME fell 0.2% to

$9,616 per metric ton by 0955 GMT as they continued to retreat

from the three-month high of $10,020 a ton set in early July.

Some copper previously planned for the U.S. is coming back

to the LME system after Washington said last week

it would impose a 50% import tariff on copper from August 1.

"LME copper stocks continue to rise as material is rerouted

back to the exchange, with the window to ship in time to meet

COMEX tariff deadlines quickly closing," analysts at broker

Sucden Financial said.

Rising LME stocks eased concerns about availability of the

metal for the nearby supply. This can be seen in the discount

for the cash copper contract against the three-month forward

contract widening to $64.5 a ton, a five-month high.

This is compared with a premium of $320 three weeks ago.

A lot of uncertainty about the U.S. tariffs remains, with

the market waiting for Washington's executive order to confirm

the August 1 deadline, provide the list of the exact copper

products the levy would apply to, and speculating about possible

exemptions for major copper producing countries.

Adding further pressure on copper, China's data showed on

Wednesday that the country's refined copper production in June

rose 14% year-on-year to a record high.

The dollar was stronger on Thursday as investors assessed

U.S. President Donald Trump's latest comments on Federal Reserve

Chair Jerome Powell's future. A stronger U.S. currency makes

dollar-priced metals more expensive for buyers using other

currencies.

In other metals, LME tin was steady at $32,715 a ton

after hitting a 3-week low of $32,575. Tin shipments from

Myanmar's Wa State are expected to resume in the coming months,

according to the International Tin Association.

Aluminium fell 0.4% to $2,567, zinc lost

0.2% to $2,704.50, while lead and nickel slipped

0.3% to $1,970.50 and $14,980, respectively.

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