Base metals largely fall on firm dollar, Trump's tariffs plan
Corrects to show Yangshan copper premium is at a one-month high, not one-week high, in paragraph 8
Nov 26 (Reuters) -Prices of base metals were largely down on Tuesday, weighed by a stronger dollar and U.S. President-elect Donald Trump's pledge to levy more tariffs on Chinese products.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell 0.5% to $9,000 per metric ton by 0216 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 eased 0.2% to 73,810 yuan ($10,174.66) a ton.
On Monday, Trump pledged an additional 10% tariff on goods from China and a 25% tariff on all products from Mexico and Canada from his first day in office.
China accounts for around half of the world's metals consumption and manufactures most of the world's goods.
Trump's proposed tariffs will likely hurt economic growth and disrupt trade flows, which could eventually dampen metals consumption.
The tariffs plan also pushed the dollar higher against major currencies, making greenback-priced metals more expensive to holders of other currencies. USD/
However, supporting copper price is China's peak demand season in November and December, evidenced by falling SHFE inventories and improving imports premium.
Yangshan copper premium SMM-CUYP-CN rose to a one-monthhigh of $53 a ton.
The LME cash copper contract was trading at a discount of $113 a ton to the three-month contract CMCU0-3, the smallest discount since Aug. 19, indicating tightening near-term supplies.
LME aluminium CMAL3 fell 0.8% to $2,630.50 a ton, nickel CMNI3 declined 0.5% to $16,125, zinc CMZN3 decreased 0.2% to $3,014.50, lead CMPB3 was down 0.7% at $2,014.50 and tin CMSN3 shed 0.5% to $28,840.
SHFE aluminium SAFcv1 rose 0.1% to 20,550 yuan a ton, nickel SNIcv1 climbed 0.8% to 128,140 yuan, zinc SZNcv1 climbed 1.2% to 25,100 yuan, lead SPBcv1 was nearly flat at 17,160 yuan and tin SSNcv1 fell 0.1% to 242,430 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng
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