Copper holds ground while Citi sees prices falling on tariffs

Copper traded little changed in a mixed session on the London Metal Exchange while Citigroup Inc. flagged risks of a pullback in prices from the impact of US tariffs on demand.

The metal has risen more than 8% this year due to resilience in the physical market, while the LMEX Index that tracks the six major contracts on the London Metal Exchange closed at a three-month high on Tuesday.

Copper can sustain current levels around $9,400 a ton until early April, after which the implementation of US tariffs could see prices drop to $8,500 within three months, Citigroup analysts including Tom Mulqueen said in a research note.

The spread between Comex and LME copper could widen to $1,400 a ton, from over $800 a ton now, as tariffs make the metal more valuable in the US, the analysts said.

Copper was little changed at $9,465.50 a ton on the LME as of 4:49 p.m. local time, while aluminum rose 0.4% and zinc dropped 0.3%.

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