NEW YORK, August 6 (Reuters) – Copper and other industrial metals continued to sell on Monday, as trade frictions between China and the United States, the world’s two largest economies, have been dragged down.
COMEX’s August copper contract fell 1.2% to close at $2.7210 per pound.
The September copper contract fell 3.20 cents to close at $2.7315 per pound.
Prices are close to the lowest level in more than a year, down about 17% from the four-year high in June. The market is worried that trade protectionism will slow down the Chinese economy and reduce demand for raw materials. China is the world’s largest consumer of goods, with copper demand accounting for about half of the world.
The State Council Tariff Commission announced on Friday evening that it decided to impose a tariff of 25%, 20%, 10%, and 5% on 5,207 tax items originating in the United States, if the US side insisted on adding it. When the tariff measures are implemented, the Chinese side will implement the above-mentioned tariff increase measures.
The US President to London has issued several Twitter slogans on Saturday to praise its tariff strategy has been effective, and will certainly be the US economy to develop again.
Analysts at Commerzbank said in the report: “The Sino-US trade disputes continue to escalate over the weekend and are pushing all metal prices down at the beginning of the new week.”
Zinc and tin in the London Metal Exchange (LME) also fell, and industrial metals are commonly used in manufacturing and construction.
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