SINGAPORE, Sept 7 (Reuters) – London copper slid 1 percent on Friday with the market facing a second week of losses as an intensifying trade war between the United States and top metals consumer China raised concerns over demand.
Asian shares carved out a 14-month trough on Friday as investors feared a new salvo of Sino-U.S. tariffs could come at any moment.
COPPER: Three-month copper on the London Metal Exchange dropped 1 percent to $5,871 a tonne by 0717 GMT, while the most-traded copper contract on the Shanghai Futures Exchange closed up 0.2 percent to 47,680 yuan ($6,973.82) a tonne.
WEEKLY MOVE: For the week, LME and Shanghai copper are down 1.7 percent.
STRENGTH: Copper has risen for the past two sessions. “Relatively positive economic data in Europe helped boost sentiment in the market,” ANZ said in a report. “Copper threatened to break back above the key $6,000 a tonne level before some light selling emerged late in the session.”
TRADE WAR: U.S. President Donald Trump has said he is prepared to quickly ramp up the trade war with China and has told aides he is ready to impose fresh tariffs on $200 billion worth of Chinese imports as soon as a public comment period on the plan ends.
RETALIATION: China will be forced to retaliate if the United States implements any new tariff measures, China’s commerce ministry warned on Thursday.
MMG: Road access to MMG Ltd’s Las Bambas copper mine in Peru, which was blocked by protesters last week, has been restored and company logistics are operating normally, the company said late on Wednesday. RUSAL: European customers will avoid deals with Russia’s United Company Rusal, under U.S. sanctions, when the industry meets in Berlin next week to seal 2019 metal supply agreements, three sources familiar with the discussions said.