SHANGHAI, Feb 17 (Reuters) –
Copper prices retreated from over three-month highs on Monday, with the market focusing on the copper spread on the London Metal Exchange swinging into a premium.
The three-month copper contract on the London Metal Exchange (LME) slid 0.3% to $9,449 a ton by 0814 GMT.
The copper on the Shanghai Futures Exchange slid 1.0% to 77,030 yuan ($10,616.04).
Short-covering on the LME ahead of contract expiry amid expectations of U.S. duties on copper triggered a sharp move in a key spread last week, after U.S. President Donald Trump announced plans for reciprocal tariffs, which will not be immediately implemented.
The tariff worries further spurred investors to buy copper on the U.S. COMEX exchange and sell on the LME .
Meanwhile, the premium for U.S. Comex copper futures over the LME contract rocketed to a record high last week.
“Extreme dislocations emerged on Friday, with a record gap between U.S. and global prices. Copper on New York’s Comex spiked, with the premium over those on the London Metal Exchange reaching as high as $1,200/ton during the session. This was more than 10% of the benchmark LME price,” ANZ Research said.
Trump’s plan to impose reciprocal tariffs on every country taxing U.S. imports has stoked concerns of a major global trade war.
Three-month aluminium on the LME was unchanged at $2,637 a ton.
Zinc gained 0.4% to $2,852, lead added 1.1% to $2,005, while tin eased 0.8% at $32,400 and nickel fell 0.4% to $15,410.
SHFE aluminium traded flat at 20,660 yuan a ton, SHFE copper slid 1.0% to 77,030 yuan, nickel slipped 0.2% to 123,860 yuan, zinc shed 0.3% to 23,850 yuan, while lead lost 0.2% to 17,190 yuan, tin was flat at 260,980 yuan. ($1 = 7.2560 Chinese yuan renminbi) (Reporting by Violet Li and Mei Mei Chu; Editing by Rashmi Aich, Sumana Nandy and Janane venkatraman)
