PHOTO
A view of the Cobre Panama mine of Canada's First Quantum Minerals, one of the world's largest open-pit copper mines, which was forced to shut down after Panama's top court ruled that its contract was unconstitutional, following nationwide protests opposed to its continued operation, during a media tour, in Donoso, Panama, March 21, 2025. REUTERS/Enea Lebrun.
Copper prices in London edged up on Tuesday as markets tracked the metal's movement to the U.S. amid potential tariff concerns, while a stronger dollar checked gains.
The benchmark three-month copper on the London Metals Exchange (LME) added 0.3% to $9,986 a metric ton as of 0727 GMT.
The dollar hit a three-week high against the yen and was firm across the board following strong U.S. services data and cautious optimism on the tariff front.
A stronger dollar makes greenback-priced metals more expensive for buyers using other currencies.
Last month, U.S. President Donald Trump ordered a probe into potential tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
Traders said the movement of copper from the LME system to the U.S. can be seen in inventories held by warehouses in the exchange's network around the world.
Stocks in LME warehouses have dropped 18% over the past four weeks. Cancelled warrants, or metal earmarked for delivery, are at 50% of the total, suggesting that another 111,000 tons is due to leave LME warehouses.
"Markets look set to nervously monitor for any copper tariff developments over the coming weeks as refined metal heads for the U.S.," Benchmark Mineral Intelligence said.
"The quarterly China Smelters Purchase Team (CSPT) meeting, which is scheduled to take place next Monday, will be closely watched also, especially in regard to the buying floor for Q2 and any potential coordinated production cutbacks."
LME aluminium rose 0.1% to $2,618 a ton, lead gained 0.7% at $2,050.5, zinc added 0.3% to $2,955, tin rose 0.3% to $34,460 and nickel climbed 0.3% to $16,055 a ton.
SHFE copper jumped 1.2% to 81,910 yuan ($11,281.59) a ton, SHFE aluminium rose 0.02% to 20,705 yuan a ton, zinc rose 0.3% to 24,125 yuan, lead dropped 0.1% at 17,560 yuan, nickel lost 0.2% to 129,220 yuan and tin slipped 0.5% to 274,870 yuan.
($1 = 7.2605 Chinese yuan)
(Reporting by Neha Arora; Editing by Sumana Nandy and Mrigank Dhaniwala)
