London copper edged lower on Tuesday, pressured by concerns over the US tariff policy and trade conflict affecting demand, although a softer dollar helped cushion the downside.
Three-month copper on the London Metal Exchange (LME) eased 0.1% to $9,517.5 a metric ton by 0358 GMT.
The most-active copper contract on the Shanghai Futures Exchange fell nearly 1% to 77,710 yuan ($10,721.58) a ton.
Benchmark LME copper hit a four-month high of $9,739 last week after US President Donald Trump granted exemptions for automakers from 25% tariffs on Canada and Mexico for one month.
On Sunday, Trump declined to comment on the negative market reaction to his on-again, off-again tariff actions against the biggest US trading partners, and whether anxieties related to his erratic policy shifts could nudge a softening economy into recession.
“In the longer term, altered trade routes and any retaliation on tariffs could lead to economic shocks, uncertainty in investment and ultimately headwinds for the suite, especially if we see tensions further rise between the US and China,” said Natalie Scott-Gray, senior metals analyst at StoneX.
“Here, note the health of China is more uncertain now than during the period of previous tariffs.”
China consumes about half of global copper supplies annually.
Meanwhile, the yen was investors’ safe harbour of choice on Tuesday and it traded near five-month highs as fears about a tariff-driven slowdown in US growth have rattled US stocks and the dollar.
A softer dollar makes greenback-priced commodities less expensive for buyers holding other currencies.
Among other metals, LME aluminium fell 0.5% to $2,681.5 a ton, zinc lost 0.2% to $2,851 and nickel eased 0.2% to $16,515. Lead was down 0.7% at $2,035 and tin slipped 0.3% to $32,565.
SHFE aluminium shed 0.6% to 20,740 yuan a ton, zinc lost 0.8% to 23,670 yuan and lead gained 0.1% to 17,440 yuan. Nickel was up 0.5% to 132,440 yuan and tin eased 0.2% to 262,170 yuan.