The Comex price started surging above its international benchmarks in January as traders bet on tariffs for US imports of the metal.
SEATTLE (Scrap Monster): Copper prices rose on Monday as traders digested signs that US President Donald Trump’s tariffs will be more targeted than anticipated.
The gain follows reports that Trump’s announcement of universal, reciprocal trade tariffs on April 2 — a date he has referred to as “Liberation Day” — will be narrower than initially expected. That has helped temper some investor fears about the impact on global trade and growth, offering potential relief for metals markets gripped by anxiety of an all-out trade war. US stocks gained while Treasuries fell.
Copper futures on the London Metal Exchange rose as much as 1.9% to more than $10,000 a metric ton, while copper contracts on New York’s Comex rose as much as 1.4% to near an all-time high before surrendering gains.
The Comex price started surging above its international benchmarks in January as traders bet on tariffs for US imports of the metal. The price gap hit a fresh all-time high of more than $1,400 a ton Monday, surpassing late February’s record after Trump announced a Commerce Department probe into potential levies.
The large price differential between London and New York has created a worldwide dash among traders and dealers to ship the red metal into America to capture the lucrative premium. Such a move has left the rest of the world, especially top consumer China, short of the crucial industrial metal. High profile copper bull, Kostas Bintas, has predicted a fresh record on tight supply.
Copper on the LME was 1% higher to settle at $9,956 a ton at 5:50 p.m. in London. Comex copper was 0.4% lower to settle at $5.0925 a pound. Other main LME metals were mixed, with zinc 0.6% higher and aluminum edging lower.
Courtesy: www.finance.yahoo.com
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