METALS-Copper prices ease on caution amid tariffs talks

By Lucas Liew

July 29 (Reuters) - Copper prices slipped on both London and Shanghai exchanges on Tuesday, as traders weighed ongoing U.S.-China negotiations and the talks between the world's top copper producer Chile and the U.S. over the latter's 50% copper tariffs on August 1.

Three-month copper on the London Metal Exchange was down 0.17% at $9,776.5 per metric ton by 0126 GMT, while the most-traded copper contract on the Shanghai Futures Exchange edged down 0.08% to 78,920 yuan ($10,994.25) a ton.

"The softening in copper prices reflects similar declines in other Chinese futures and is likely to be short-lived, as traders are cautious and closely watching U.S.-China trade talks and developments in U.S. copper import tariffs," a Shanghai-based analyst at a futures company said.

Top U.S. and Chinese economic officials met in Stockholm and held talks for more than five hours on Monday, seeking to resolve ongoing trade disputes between the world's top two economies, and to extend a truce by three months.

Elsewhere, Chile, the world's top copper producer and largest provider of refined copper to the U.S., expects U.S. copper tariffs to be discussed within broader U.S. trade talks in Washington this week, Finance Minister Mario Marcel said on Monday.

Among other LME metals, aluminium slid 0.1% to $2,629 a ton, nickel fell 0.19% to $15,240, and zinc lost 0.2% to $2,812, while lead gained 0.25% to $2,022 and tin climbed 0.14% to $33,760.

SHFE nickel fell 0.73% to 121,940 yuan a ton, aluminium dipped 0.19% to 20,610 yuan, zinc was down 0.31% at 22,665 yuan, tin lost 0.54% to 267,230 yuan, while lead gained 0.03% to 16,945 yuan.

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DATA/EVENTS (GMT) 1000 France Unemp Class-A SA June 1400 US Consumer Confidence July ($1 = 7.1783 Chinese yuan) (Reporting by Lucas Liew; Editing by Janane Venkatraman)