(Updates prices after Asia market close, adds details in
paragraph 6)
NEW DELHI, March 27 (Reuters) - Copper prices in London
edged up on Thursday, with markets tracking inflows of the
industrial metal to the U.S. as demand rose ahead of potential
tariffs, and a downward move in the dollar index further lent
support.
The benchmark three-month copper on the London
Metals Exchange (LME) added 0.1% to $9,941 a metric ton as of
0707 GMT. In the last session, prices hit $10,164.5 a ton, the
highest since June 7.
Traders have been bidding up copper prices after U.S.
President Donald Trump ordered a probe into potential tariffs on
copper imports to rebuild U.S. production of the metal.
"Trump's announcement has led to frontloading and (the)
market is trying to price in tariffs; there have been (a) lot of
inflows in the U.S. market," said ANZ Commodity Strategist Soni
Kumari.
"Once there is clarity around tariffs, this will subside as
demand from (the) U.S. will soften and that will weigh on
prices."
Citi Research forecast that a 25% U.S. copper import tariff
would be imposed in the second quarter of this year and lowered
its three-month price outlook to $9,500 per ton, down from
$10,000, the brokerage said in a note.
On Wednesday, Trump unveiled a 25% tariff on imported cars
and light trucks starting next week, widening the global trade
war.
The dollar index, which measures the U.S. currency
against six rivals, drifted lower.
A softer dollar makes greenback-priced commodities cheaper
for buyers using other currencies.
Among other metals, LME aluminium added 0.3% to
$2,613.5 a ton, lead fell 0.6% to $2,078.5, zinc dipped
0.4% to $2,945, tin advanced 0.4% to $35,195 and nickel
eased 0.3% to $16,190 a ton.
SHFE copper slid 1.03% to 81,560 yuan ($11,229.21)
a ton, SHFE aluminium gained 0.6% to 20,815 yuan a ton,
zinc dropped 0.3% to 24,105 yuan, lead
advanced 0.2% to 17,615 yuan, nickel was down 0.05% to
130,030 yuan and tin rose 0.8% to 281,010 yuan.
($1 = 7.2632 Chinese yuan)