Base metals prices on the Shanghai Futures Exchange (SHFE) remained under pressure from simmering global trade tensions as well as a firm dollar Wednesday, but the complex has benefited from a slight improvement in risk sentiment with most prices edging upward.
Copper was the exception, however, with its prices weakening marginally. The most-traded August copper contract price on the SHFE dipped to 51,590 yuan ($7,853) per tonne, down by 0.1percent per tonne from Tuesday’s close.
“Copper prices remained under pressure as news of retaliatory actions by countries on US tariffs continued to raise concerns that economic growth would be impacted,” according to a research report.
“Canada was the latest, with the government preparing new measures to stop the flood of steel imports from producers seeking to avoid US tariffs,” it added.
Last week, US president Donald Trump warned that the European Union could join China in facing import tariffs of 20 percent, with US commerce secretary Wilbur Ross issuing further notice that action on EU car imports would be taken by late July or August.
The ratcheting up in the United States’ trade spat with key allies had fueled de-risking and invoked a bout of selling across the base metals complex, while a firm dollar has also kept a cap on the sector.
Though it has retreated from recent highs, the dollar index remains in relatively high ground.
The index stood at 94.64 in Shanghai Wednesday, after hitting a high of 95.54 on June 21, its highest since July last year.