China’s copper futures prices fell to their lowest in three weeks, as demand prospects for base metals weakened following the latest escalation in the Sino-U.S. trade war.
U.S. President Donald Trump on Friday announced a 5% additional duty on $550 billion in targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. products.
The most-traded copper contract on the Shanghai Futures Exchange fell for the fourth straight session, dropping as much as 1% to 45,830 yuan ($6,461.48) a tonne, its lowest since Aug. 5. It ended down 0.6% at the close.
China also said it will impose an extra 5% tariff on imports of copper scrap and aluminium scrap from the United States from Dec. 15, adding to the 25% levy on copper scrap from a previous round of duties.
“The escalation suggests uncertainty will continue to weigh on global trade, industrial production and investment, with no sign of a resolution,” ANZ said in a note.
* PRICES: Shanghai aluminium closed down 0.5%, zinc decreased 0.9%, lead was 0.8% lower and tin dropped 0.9% while nickel rose 0.8%.
* LME: The London Metal Exchange is closed on Monday for a bank holiday and will reopen on Tuesday.
* CHINA: China plans to ease capital requirement for infrastructure projects in the second half this year, in a bid to boost investment and fend off rising headwinds in the slowing economy, the state planner said.
* TRADE: President Donald Trump said on Monday China had contacted U.S. trade officials overnight to say it wanted to return to the negotiating table.
* HONGQIAO: China Hongqiao, the world’s biggest aluminium producer, on Friday cut its 2019 production guidance by up to 300,000 tonnes, or almost 5%, after recent flooding on its premises.
* ALUMINIUM: Analysts at Wood Mackenzie said output cuts in China would widen a deficit in China to 1 million tonnes and globally to 1.4 million tonnes, which they said could push prices above $1,800 a tonne.
* COPPER: China’s refined copper cathode imports rose 37.6% in July from the previous month to 292,201 tonnes but was down 8% year-on-year, according to Reuters calculations based on data released by the General Administration of Customs on Sunday.
* SPOT COPPER: The Qianhai Mercantile Exchange, a mainland China spot commodities platform owned by Hong Kong Exchanges and Clearing Ltd, started trading copper rods on Friday, adding to existing trade of alumina and aluminium products.