Copper hits two-week low in wake of setback on Trump’s health care reform

LONDON — Copper slid to a twoweek low on Monday as funds cut bets on higher prices after US President Donald J. Trump’s failure to push through health care reform fueled concern about his ability to implement his economic policies.

Benchmark copper on the London Metal Exchange (LME) ended 0.70% down at $ 5,760 a ton, having touched $ 5,671, its lowest since March 9.

“Trump’s election was seen as good for markets, but he is now being seen as potentially less effective than people were thinking,” said SP Angel analyst John Meyer.

“His failure on Obamacare has created uncertainty about whether he can push his policies through Congress.”

Mr. Trump suffered a political setback on Friday in a Congress controlled by his own party when Republican leaders pulled legislation to overhaul the US health care system.

A weaker dollar, at four-month lows against a basket of currencies, could yet support prices because it makes dollar-denominated metals cheaper for holders of other currencies.

A closing copper price below the 100- day moving average around $5,749 could prompt further losses.

The union at Chile’s Escondida copper mine has ended its 43-day strike by invoking a legal provision to extend workers’ old contract by 18 months, leaving owner BHP Billiton in a weaker position for future negotiations.

The market focus is on New Orleans, warehouses’ on-warrant stocks have dropped to 183,800 tons after a further 21,300 tons of cancellations or metal earmarked for delivery.

On- warrant zinc stocks — metal available to the market — have fallen 42% this year to the lowest levels since November 2008.

Receding worries about supply shortages saw nickel close 1% down at $9,770 a ton, having touched $9,655, its lowest since Jan. 30.

Among other industrial metals, aluminum ended 0.50% lower at $1,930 a ton, zinc ceded 2.50% to $2,760 and lead lost 2.40% to $2,297, while tin was untraded at the close but bid down 1.80% to $19,500.

LME copper trading was at a 313 yuan premium to prices on the Shanghai Futures Exchange at 1701 GMT, aluminum was at a 1,760 yuan discount, zinc a 75 yuan premium, lead at a 1,630 yuan discount and nickel at a 2,647 yuan premium. —