GLOBAL COPPER WRAP: Shanghai premiums make gains, US market eyes potential Mexico tariffs

Copper premiums made gains in Shanghai on a more favorable import arbitrage ratio, while the US market is closely eyeing whether President Donald Trump will follow through with threats to tariff all imports from Mexico, a major cathode supplier.

US President Trump threatens to set import tariffs on all Mexican imports Shanghai premiums rise on favorable import arb shift European market flat on lack of buying Trump’s Mexico tariff threat stirs copper market but premium remains stable The US copper market, which has been experiencing softened demand and muted spot activity otherwise, was jolted by the threat of new tariffs on all imports from Mexico. US President Donald Trump announced on May 30 that he would impose 5% tariffs on all goods from Mexico with effect from June 10. The tax will “gradually increase” until Mexico stops the flow of undocumented migrants into the US, Trump tweeted. This sudden announcement, which is facing stiff resistance even from Republican senators, will have wide-reaching impact if implemented. A producer told Fastmarkets the Mexican tariff threat “hits us directly, so we are reviewing the situation closely.” But the US administration is unlike to implement...

Published

Archie Hunter

Hassan Butt

Violet Li

Rijuta Dey Bera

June 05, 2019

11:30 GMT

London, Shanghai, New York