(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.