Copper Steadies as Tariff Shadow Lengthens

By Siam Sukkhee Trading Co., Ltd — 2026-10-18 — Bing News — zinc price LME

Copper bounced 0.9 percent to $14,480 a tonne on Friday's LME open-outcry. The rebound felt like relief after Thursday's selloff, something to do with equity markets settling down and the dollar weakening. Nothing remarkable about that.

But here's what actually matters. We're watching the slow-motion unwinding of something artificial.

If they do, what's the premium for holding metal on the American side of the border right now? The arbitrage was fat enough to justify the freight and finance costs.

Which means more supply for everyone else. Which means downward pressure.

The year's gains—copper is up 17 percent so far—don't disappear. It hit $14,875 five weeks ago and that was real. But the momentum has a mechanical component that's about to reverse.

Zinc picked up 0.9 percent to $3,698.50. Aluminium rose 0.8 percent to $3,011.50, though that market's looking at 2027 surplus as Indonesian supply kicks in. Nickel edged up 0.9 percent to $15,350, held partly by Indonesian production economics—when costs rise, marginal producers can't keep output flowing at lower prices. The metals complex was in backwardation across the board, meaning near-term contracts trading at a premium. That's the structure of a tight market.

LME Week happens next week in London. Traders and producers will be circling each other, trying to read who's positioned for what. The annual contract negotiations for 2027 will start. And somewhere in those conversations, people will be quietly thinking about early December. About when the last containers arrive. About what happens after.

Source: "US tariff uncertainty remained a major driver of copper cathode trade flows in 2026." — Fastmarkets

Tags: zinc trading Southeast Asia