LONDON: Benchmark copper prices extended gains on Tuesday, holding at their highest levels in a month, after data showed stimulus measures in top metals consumer China were kicking in as a Chinese official vowed to hit economic targets.
Three-month copper on the London Metal Exchange (LME) was up 0.7% at $9,161 per metric ton by 1010 GMT, the strongest since Dec. 12.
Data showed new Chinese bank loans beat forecasts as government stimulus measures slowly spurred credit demand while a central bank official said China will improve policy implementation to hit its full-year targets.
“The market is looking towards China for any initiatives that can support the outlook, especially with tariffs looming,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“There is also some speculation that the Trump administration will gradually introduce tariffs over a period of time and that has helped soothe some of the nervousness ahead of the inauguration.”
Copper rallies to one-month peak on signs of improving demand
Also lifting the market were signs of healthy demand in China after the country’s copper imports hit a 13-month high in December, rising by nearly 18% year-on-year.
Keeping gains in check, however, was a firmer dollar that hovered at its highest level in more than two years as traders scaled back U.S. rate cuts bets in 2025 after strong economic data.
A stronger dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.
The most-traded February copper contract on the SHFE gained 0.2% to 75,430 yuan ($10,289.88) a ton by the end of the Asia afternoon trade session.
In other metals, LME aluminium rose 0.4% to $2,589 a ton, zinc gained 0.6% to $2,883, tin added 0.4% to $29,970 while nickel slipped 0.4% to $15,835 and lead eased 0.7% to $1,944.
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