down on the stock exchange

Benchmark copper on the London Metal Exchange (LME) fell 0.8% to $9,533 a tonne.

Last week, copper prices hit a four-month high of $9,739 after US President Donald Trump exempted carmakers from 25% tariffs on Canada and Mexico for one month.

However, this relief was short-lived and at the same time came under pressure from tariffs and trade wars.

“We will be cautious going into March as we think the market is not paying enough attention to the slowing US growth picture, which could offset concerns about tight supplies,” said Marex adviser Edward Meir. “That is one of the consequences of tariffs; it effectively freezes business activity.”

China consumes about half of the world’s annual copper supply. Weaker demand for copper is reflected in the stockpiles monitored by the Shanghai Futures Exchange. At nearly 270,000 tonnes, the stockpile has risen more than 220% since the start of the year.

At Shanghai's linked warehouses, copper stocks have increased by nearly 200% to 45,000 tonnes since the beginning of January.

However, traders said the Yangshan premium reflects stronger Chinese demand. At $50 a tonne, this gauge of China’s copper import demand has risen more than 40% since early March.

Meanwhile, stocks in LME-registered warehouses fell as the metal was moved to COMEX in preparation for US tariffs on copper imports.

Cancelled orders – metal designated for delivery – account for more than 40% of total stocks suggesting more copper will leave LME warehouses in the coming days.

Industrial metals also received some support from a weaker US currency. Aluminium fell 0.2% to $2,699 a tonne, zinc lost 1% to $2,858, lead rose 1.1% to $2,041 and tin rose 0.2% to $32,595 while nickel rose 0.3% to $16,560.