Copper prices held steady on Monday as the market waited for further developments on U.S.-China trade relations and for clues to demand prospects in China, where growth is under pressure from U.S. import tariffs.
Benchmark copper on the London Metal Exchange (LME) was nearly unchanged at $9,376.50 a metric ton by 1035 GMT.
U.S. President Donald Trump insists there has been progress with China, and that he has spoken with President Xi Jinping. However, Beijing has denied trade talks are occurring, and on Sunday, Treasury Secretary Scott Bessent did not say that tariff talks were underway.
“The impact of tariffs on China – the biggest consumer of metals – is particularly in focus for metals markets,” said ING commodities analyst Ewa Manthey.
“With growth in the U.S. likely to slow, thanks to tariffs, and China already struggling to revive its economy, demand for copper and other industrial metals is likely to weaken.”
Analysts say further measures by Chinese authorities to support growth and demand could limit downside for copper, used widely in the power and construction industries.
Copper sags on tariff turmoil, firmer dollar
China has advanced this year’s stimulus plans but is holding off on fresh measures as it tries to maintain composure, betting on Washington blinking first in a protracted trade war.
Support for copper prices comes from a massive drop in inventories of the metal in warehouses monitored by Shanghai Futures Exchange (SHFE), which dropped 32% last week to 116,753 tons from the previous week.
The drop in ShFE copper stocks is a result of some Chinese copper consumers turning to refined copper because of tight scrap supplies.
On the technical front, strong support for copper comes at the 100- and 200-day moving averages at around $9,305 and $9,320, respectively.
Industrial metal markets are waiting for surveys of purchasing managers in China’s manufacturing sector, due later this week, which is expected to show shrinking activity in April.
In other metals, aluminum was up 0.3% at $2,434.50 a ton, zinc slipped 0.4% to $2,636.50, lead rose 1.3% to $1,968.50, tin eased 0.1% at $31,950 and nickel was up 1.1% at $15,710 a ton.
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