Copper gains as China plans policy package to spur consumer demand

BEIJING: Copper prices gained on Monday, bolstered by a weaker dollar and rising hopes of better demand as top buyer China plans to roll out a package of policies to spur domestic consumer demand.

The most-traded copper contract on the Shanghai Futures Exchange jumped 2.91% to 103,200 yuan ($14,792.94) per metric ton by 0151 GMT.

It hit a record high at 105,500 yuan on January 6. Benchmark three-month copper on the London Metal Exchange climbed 1.22% to $13,156 per ton.

The benchmark touched its all-time high at $13,387.5 on January 6.

China’s cabinet, chaired by Premier Li Qiang, held a meeting on Friday about implementing a package of fiscal and financial policies to boost domestic demand, including initiatives to spur household consumption, in a bid to ensure the economy gets off to a solid start in 2026.

Prices of copper, which is used in the power, construction and manufacturing sectors, were also supported by a fall in production at Chilean state-run miner Codelco in November.

Additionally, market focus was also on Rio Tinto’s, talks to buy Glencore, which could create the world’s largest mining company with a combined market value of nearly $207 billion if the bid succeeds. Base metals found support from a softer US currency , which makes dollar-priced commodities less expensive for buyers using other currencies.

SHFE nickel surged 3.63% to 142,060 yuan.

Meanwhile, Shanghai tin hit the highest since Mach 9, 2022 at 371,870 yuan a ton on concerns over supply, said two analysts on the condition of anonymity as they are not authorised to speak to media.

SHFE aluminium gained 1.93%, lead advanced 1.65% and zinc added 0.48%. Among other LME metals, aluminium added 0.7%, nickel rose 1.31%, lead ticked up 0.32%, tin jumped 2.47% and zinc edged up 0.49%.