LONDON: Copper prices rose on Wednesday as a stronger yuan currency in top metals consumer China and weak dollar offset uncertainty about global trade tensions.
Three-month copper on the London Metal Exchange was up 0.2% at $9,951 a metric ton by 1025 GMT.
The metal, used in power and construction, started the second half of 2025 by testing the key psychological mark of $10,000 for the first time in three months on Tuesday as strong manufacturing data in top consumer China improved sentiment.
This spike was also due to a persisting premium in U.S. copper futures amid expectations that copper would eventually be subject to the Section 232 import tariffs in the United States, assuming that the ongoing investigation will conclude that imports are threatening U.S. national security, said analyst Carsten Menke at Julius Baer.
These expectations have caused a surge in U.S. copper imports this year, tightening the availability of the metal outside the U.S. and prompting the nearby LME copper contracts to trade at a premium over those with longer maturities.
Goldman Sachs said in a note that it expects China’s 2025 demand for refined copper to rise by 6% and sees upside risks to its August LME copper forecast of $10,050 as China and the U.S. compete for copper.
Copper inches up on weaker dollar; investors watch US trade talks
In the longer term, Julius Baer expects the global copper market to be sufficiently supplied this year and is concerned about the demand outlook due to pre-buying from U.S. importers.
Meanwhile, the U.S. dollar languished near its lowest since February 2022 on Wednesday as traders considered the potential impact of President Donald Trump’s spending bill, and looming trade tariff deadlines. The yuan was near an eight-month high against the dollar amid hopes for an easing of U.S.-China trade tensions.
LME aluminium fell 0.2% to $2,593.50 a ton, zinc rose 0.4% to $2,725.50, lead climbed 0.4% to $2,046.50, tin lost 0.6% to $33,430 and nickel gained 0.1% to $15,220.
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