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METALS-Rising inventories and a stronger dollar keep copper under pressure
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Adds analyst comment, updates prices, changes dateline
By Polina Devitt
LONDON, July 17 (Reuters) - Copper prices edged down on Thursday as the dollar strengthened and stocks in the Asian warehouses registered with the London Metal Exchange kept on rising in anticipation of the U.S. 50% import tariff for the metal.
Three-month copper prices on the LME CMCU3 fell 0.2% to $9,616 per metric ton by 0955 GMT as they continued to retreat from the three-month high of $10,020 a ton set in early July.
Some copper previously planned for the U.S. is coming back to the LME system MCUSTX-TOTAL after Washington said last week it would impose a 50% import tariff on copper from August 1.
"LME copper stocks continue to rise as material is rerouted back to the exchange, with the window to ship in time to meet COMEX tariff deadlines quickly closing," analysts at broker Sucden Financial said.
Rising LME stocks eased concerns about availability of the metal for the nearby supply. This can be seen in the discount for the cash copper contract against the three-month forward contract CMCU0-3 widening to $64.5 a ton, a five-month high. This is compared with a premium of $320 three weeks ago.
A lot of uncertainty about the U.S. tariffs remains, with the market waiting for Washington's executive order to confirm the August 1 deadline, provide the list of the exact copper products the levy would apply to, and speculating about possible exemptions for major copper producing countries.
Adding further pressure on copper, China's data showed on Wednesday that the country's refined copper production in June rose 14% year-on-year to a record high.
The dollar was stronger on Thursday as investors assessed U.S. President Donald Trump's latest comments on Federal Reserve Chair Jerome Powell's future. A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.
In other metals, LME tin CMSN3 was steady at $32,715 a ton after hitting a 3-week low of $32,575. Tin shipments from Myanmar's Wa State are expected to resume in the coming months, according to the International Tin Association.
Aluminium CMAL3 fell 0.4% to $2,567, zinc CMZN3 lost 0.2% to $2,704.50, while lead CNPB3 and nickel CMNI3 slipped 0.3% to $1,970.50 and $14,980, respectively.
(Reporting by Polina Devitt;
Editing by Alison Williams)
((polina.devitt@thomsonreuters.com; Reuters Messaging: polina.devitt.thomsonreuters.com@reuters.net))
For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C
Foreign exchange rates FX=SPEED GUIDES LME/INDEX


