Copper drifts to one-week low on US-China tensions

LONDON — Copper fell to its lowest level in a week on Wednesday after comments by US President Donald Trump stoked more worries about trade tensions with top metals consumer China.

Most other industrial metals were in the red due to concern about growth in China and after the country’s currency slipped.

Markets were unconvinced when China expressed confidence on Wednesday that it could reach a trade deal with the US, after Mr. Trump renewed warnings he would revert to more tariffs if the two sides cannot resolve their differences.

“We’re seeing a bit of red, mainly to do with Trump’s comments about liking tariffs, plus the renminbi weakened after having strengthened during the past several days, that basically did the damage,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. “Copper touched the upper end of its range but failed to break above yesterday and then the tariff talk sent it lower.”

London Metal Exchange (LME) three-month copper closed down 0.6% at $6,174 a ton, after touching $6,142, the lowest since Nov. 28.

LME benchmark zinc rose 1.2% to close $2,619 a ton, underpinned by shortages in the refined sector that have eroded inventories.

“The speculative short in zinc is one of the smaller shorts of the complex at 4.4% of open interest,” Alastair Munro at broker Marex Spectron said in a note.

LME zinc inventories fell further to 110,700 tons, down more than half since mid-August to the lowest since January 2008. The premium of cash zinc over the three-month contract hit another record high of $122 a ton, indicating severe shortages of nearby material.

China’s construction steel rebar jumped more than four percent, providing support to steel-linked metals zinc and nickel. LME nickel added 0.8% to finish at $11,225 a ton.

BHP received approval from the local Australian government to develop the Venus nickel mine that will feed its Nickel West battery chemicals business.

Among other industrial metals, aluminum slipped 0.3% to close at $1,969 a ton; lead shed 1.2% to finish at $1,983; and tin was barely changed, up 0.03% at $19,180. —