Copper slumped to the weakest in more than two weeks on Friday, burdened by concerns about trade war as a revenge for fresh US tariffs, which can achieve economic growth in the top metals of Chinese and world consumers.
Copper three months in the London Metal Exchange (LME) HG1! down 0.5% at $ 9,347.50 metric tons at 1100 GMT, weakened since February 12, and was determined for a 2% weekly decline.
US President Donald Trump on Thursday threatened to slap an additional 10% task of imports from China in addition to the 10% tariff charged on February 4.
Trump also said that the 25% tariff proposed for Mexican and Canadian goods would apply on Tuesday, disappointing several investors who hoped for delay.
“There is not much clarity, but the tariff can be cumulative. And I think the assumption of work is yes, “said Nitesh Shah, a commodity strategist at Wisdomtree.
“Aluminum and steel tariffs, are they above what has been implemented in Canada and Mexico? If so, you talk about 35% tariffs on aluminum, which is quite punished. “
“So I think a lot of metals suffer as a result.”
Trump has imposed 25% tariffs on steel and aluminum, while Canada supplies most of the last US imports.
Concerns about increasing trade war sending cold through a broader financial market, hitting shares and sending dollars near the highest multi-week.
Strong Dxy Dollar makes commodities valued in US currencies more expensive for buyers using other currencies.
Investors are also eyeing the meeting of the Chinese National People’s Congress scheduled for March 5.
“China has played quite a lot of the same strategy over the last three years now. This is a very little stimulus, no one changes the game on a large scale, “Shah said.
LME Tin Ftin1! down 1% to $ 31,390 per ton after the news emerged that the state of WA Myanmar was considering allowing mining to continue in a rich tin. Myanmar is the third largest producer in the world.
Among the other metals, LME Aluminum Ali1! Subside 0, 4% to $ 2,621 per ton, Seng Znc1! Warehouse 0.7% to $ 2,790.50, Nickel Nickel1! Lost 1% to $ 15,680 and lead Lead1! down 0.3% at $ 2,001.
Source: Reuters
