NATION REPORTER
COPPER prices traded within a narrow range on both the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) as investors awaited further clarity on United States trade talks and potential copper import tariffs.
According to analysts from Access Bank Group, LME copper edged down 0.15 percent to US$9,863 per ton, while SHFE copper inched up 0.13 percent to 79,840 yuan.
“Market uncertainty intensified after President Trump abruptly ended trade negotiations with Canada, vowing new tariffs. Fears of further US levies have driven strong copper shipments to the US, tightening supplies elsewhere and pushing spot prices higher relative to futures. LME copper inventories fell to their lowest levels since August 2023, while SHFE warehouse stocks declined by 19 percent to a six-week low,” the analysts noted.
On the international front, China’s manufacturing sector contracted for a third consecutive month in June 2025.
The official Purchasing Managers’ Index (PMI) improved slightly to 49.7 from 49.5 in May but remained below the crucial 50-point mark that separates growth from contraction.
While production and new orders posted modest gains, inventory and employment levels continued to slide.
Meanwhile, the non-manufacturing PMI rose to 50.5, indicating modest growth in services and construction.
Despite Beijing’s stimulus measures, manufacturers continue to grapple with a price war, weak demand, and steep US tariffs, which contributed to a sharp 34.5 percent drop in exports to the US in May.
“Consumer prices dipped 0.1 percent in May, while producer prices recorded their sharpest fall since July 2023. Industrial profits also declined by 9.1 percent. Although China and the US agreed on trade framework details, tensions remain high, with Beijing opposing tariff relief deals it views as unfavourable,” the analysts added.
A private Caixin PMI survey, due Tuesday, is expected to show a slight improvement to 49.
