Prices of industrial metals fall sharply as specter of new US tariffs looms

BEIJING — Base metals prices fell sharply on Monday on reports that the United States may be about to impose tariffs on another $200 billion worth of Chinese goods.

The tit-for-tat trade row between the world’s top two economies has left investors fearing that demand for industrial metals will soften. US President Donald Trump is likely to impose the tariffs, which were first unveiled in July, as early as Monday, a senior administration official told Reuters on Saturday.

“All eyes will be on trade talks, with the likelihood of further US tariffs on Chinese imports likely to weigh on industrial commodity prices,” ANZ wrote in a note.

Three-month copper on the London Metal Exchange (LME) fell as much as 1.9% to $5,861.50 a ton and stood at $5,895.50 a ton as of 0704 GMT. The most-traded November copper contract on the Shanghai Futures Exchange closed down 1.4% at 47,930 yuan ($6,977.52) a ton.

Chinese copper import premiums are currently assessed at $96 a ton, the highest since February 2016, as low prices tempt bargainhunters, propping up demand for physical metal.

LME nickel fell furthest, slumping 2.7% to $12,315 a ton.

Only Shanghai tin was in positive territory, closing up 0.2%.

Shares in China Hongqiao Group, the world’s biggest aluminum producer, tumbled for a second day on Monday after the company’s home province of Shandong said it was introducing fees for onsite power plants.

Chile’s congress is studying a proposal for an additional royalty payment for copper and lithium miners operating in the country to bolster the development of the regions around their deposits, according to a draft seen by Reuters.

Norway’s Hydro said on Friday it had dropped plans to buy several of Rio Tinto’s assets, including an aluminum plant in Iceland. —