London metals prices mixed on optimism around trade talks

SHANGHAI: London metals prices traded mixed on Monday as optimism over easing US-China trade tensions offered some respite to investors, although concerns over the fragile negotiations lingered.

Benchmark copper on the London Metal Exchange (LME) was down 0.5% at $9,327 a metric ton by 0742 GMT.

The thaw in relations was sparked by China’s decision to exempt certain US imports from its retaliatory tariffs, a move seen as a sign that the trade war between the two economic powerhouse may be abating.

The Trump administration had signal led a willingness to de-escalate the trade conflict last week, with US President Donald Trump confirming that talks on tariffs were underway with Chinese officials.

The protracted trade spat has raised concerns about a potential global recession, and investors have been closely watching developments.

“The market is currently being driven by US-China trade talks, and while there is optimism around that, we remain cautious as sentiment can shift rapidly,” said a trader, highlighting the ongoing uncertainty surrounding the negotiations.

In other metals, aluminum added 0.1% to $2,430 a ton, zinc slipped 0.07% to $2,628, lead rose 0.1% to $1,946, tin lost 0.3% to $31,870 and nickel was down 0.2% at $15,520 a ton.

The most-traded copper contract on the Shanghai Futures Exchange (SHE) fell 0.7% to 77,110 yuan ($10,567) per metric ton.

SHE aluminum lost 0.3% to 19,900 yuan a ton, zinc slid 1.5% to 22,405 yuan, lead was down 0.7% to 16,890 yuan, while nickel fell 1.1% at 124,310 yuan, and tin lost 0.7% to 260,490 yuan.