Prices of base metals rose on Thursday, with Shanghai copper notching a near three-week high, as the dollar retreated and concerns eased about a major trade war between the United States and top metals consumer China.
The most-active copper contract on the Shanghai Futures Exchange gained 1.4% to 76,340 yuan ($10,478.49) a metric ton by 0513 GMT, hitting its highest since January 17.
Three-month copper on the London Metal Exchange (LME) rose 1.1% to $9,337.5 a ton.
The dollar index hovered near a one-week low. A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies.
Earlier this week, China imposed tit-for-tat tariffs on some U.S. imports, escalating the trade tension between the world’s two top economies, while President Donald Trump gave temporary tariff exemptions to Mexico and Canada.
Attention will also be on China to see if the country unveils more stimulus in its National People’s Congress meeting in March, given the tariff war and concerns about slow demand.
Shanghai copper eases on US-China trade tensions
“Investors appeared to take the rising trade tensions in their stride, with market activity relatively subdued. Most will be waiting for any sign of a rebound in demand following the holidays,” said Daniel Hynes, senior commodity strategist and ANZ bank.
LME aluminium firmed 0.5% to $2,628.5 a ton, zinc was up 1.4% at $2,819.5, tin added 0.2% to $30,850, lead climbed 0.5% to $2,012, and nickel rose 0.9% to $15,675.
SHFE aluminium gained 0.1% to 20,290 yuan a ton, nickel climbed 2.3% to 126,010 yuan, zinc firmed 0.7% to 23,550 yuan, lead gained 0.8% to 17,135 yuan and tin advanced 2.2% to 258,810 yuan.
Meanwhile, Washington-based global security nonprofit C4ADS said Chinese firms control about 75% of Indonesia’s nickel refining capacity, raising concerns over supply-chain control and environmental risks.
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