SHANGHAI: Base metals in London climbed on Thursday, supported by improved market sentiment after U.S. President Donald Trump decided to temporarily pause the recently imposed hefty duties on several countries.
The benchmark three-month copper on the London Metal Exchange (LME) gained 4.3% to $8,980 per metric ton as of 0434 GMT.
LME copper has tumbled 12% since touching $10,164.50, its highest point in more than nine months on March 26, before the escalation of trade tensions.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 3.2% to 74,810 yuan ($10,187.80) per metric ton, a rebound from an eight-month low hit on Wednesday.
On Wednesday, Trump announced a 90-day pause on many of his new tariffs in a stunning reversal after a days-long market rout that erased trillions of dollars from global stocks.
Copper, aluminium edge up after sharp sell-off
However, Trump further pressured China by raising tariffs on the top metals consumer to 125%, up from the earlier 104%, following Beijing’s decision to increase duties on American imports to 84%.
“Trump’s sudden shift in tariff policy caught the market off guard. Investors, initially pessimistic about economic prospects, found renewed confidence with the reprieve,” a trader said.
“However, this boost may be fleeting given his unpredictable stance.”
SHFE aluminium rose 1.9% to 19,810 yuan a ton, zinc added 2.3% to 22,575 yuan, lead gained 1.6% to 16,735 yuan, nickel climbed 1.2% at 120,370 yuan, while tin fell 1.5% to 255,610 yuan.
Among other metals, LME aluminium added 3.7% to $2,400 a ton, lead rose 3% to $1,896, tin gained 6.8% to $31,850, zinc CMZN3 up 3.6% to $2,651 and nickel was up 3.9% at $14,630 a ton.
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