LONDON: Aluminium and copper prices fell in London on Friday under pressure from a stronger dollar as global markets braced for the threat of U.S. tariffs on Canada and Mexico as early as Saturday.
Three-month copper on the London Metal Exchange (LME) was down 0.8% at $9,055.50 a metric ton by 1106 GMT while aluminium lost 1.1% to $2,598.
LME copper was on track for a 2.4% fall this week, its worst week in two-and-a-half months, but remained set to register its first monthly growth since September with a 3.3% gain in January.
“One down and 11 to go. January 2025 has reminded us of the choppy nature the opening month of the year often brings,” said Alastair Munro at broker Marex.
U.S. President Donald Trump on Thursday reiterated his threat of 25% duties on imports from Canada and Mexico. That helped to lift the U.S. currency, making dollar-priced metals more expensive for buyers holding other currencies. It also inflated overall uncertainty driving more investors towards safe-haven assets.
Copper, aluminium edge higher as market awaits tariff details
“The reality is that most fund interest lies in other commodity spaces, such as energy, precious (metals) and agriculture where they see a clearer picture. Our space is therefore more dominated by higher-frequency types,” Munro said.
Industrial metals were also affected by recent concern over global economic growth, with U.S. inflation data on Friday expected to provide clues on the interest rate outlook.
The U.S. Federal Reserve held rates steady on Wednesday, adding that there would be no rush to cut them again until inflation and jobs data made it appropriate.
In other metals, LME zinc fell 0.9% to $2,767.50 a ton, lead shed 0.7% to $1,953, tin eased 0.6% to $30,055 and nickel was down 0.9% at $15,255.
The main markets in top metals consumer China are closed for the Lunar New Year holiday until Feb. 5.
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