Base metals all declined, with copper futures hitting a one-month low [LME closing on April 3].

Base metals on the London Metal Exchange (LME) all fell on Thursday, with copper futures hitting a one-month low, as investors worried that new broad tariffs in the US would hinder global economic growth and affect industrial demand for metals.

At 17:00 London time on April 3 (00:00 Beijing time on April 4), LME three-month copper closed down $334, or 3.44%, at $9,366.5 per mt, after earlier touching $9,340, the lowest since March 4.

David Wilson, an analyst at BNP Paribas, said: "The market is digesting the negative demand impact of US reciprocal tariffs and the potential tariff responses from major trading partners. We expect the decline to continue at least in the short term."

As tariff hikes hit global growth expectations, copper consumption prospects, and risk appetite, Citi expects copper prices to pull back to $8,500 by Q3. BNP Paribas believes copper prices will fall to this level in Q2.

According to China News Service, US President Trump signed an executive order on so-called "reciprocal tariffs" at the White House on the 2nd, announcing that the US would impose a 10% "minimum benchmark tariff" on trading partners and higher tariffs on certain trading partners.

Trump had previously announced a 25% tariff on steel and aluminum products, cars, and parts imported into the US. According to the above executive order, these products will not be subject to "reciprocal tariffs." Copper, pharmaceuticals, semiconductors, and timber are also not subject to "reciprocal tariffs."

LME three-month aluminum earlier touched $2,445, the lowest since September 13, 2024, and closed down $42.5, or 1.71%, at $2,448 per mt.

Three-month zinc fell 2.41% to $2,713.5 per mt, after earlier touching $2,707, the lowest since February 3.

Three-month lead fell 0.71%, closing at $1,955.5 per mt, after earlier touching $1,946, the lowest since February 4.

Three-month nickel closed down 1.45% at $15,732 per mt, after earlier touching a one-month low.

Three-month tin closed at $37,334 per mt, down $587 or 1.55%. Tin prices had touched $38,395 in the previous session, the strongest since May 2022, due to short covering amid concerns about supply disruptions caused by an earthquake in tin-rich Myanmar last Friday.