LONDON: Copper prices scaled three-week peaks on Wednesday as worries about global trade tensions eased after U.S. President Donald Trump suggested import tariffs on top consumer China could fall.
Benchmark copper on the London Metal Exchange (LME) was up 0.7% at $9,438 a metric ton at 1033 GMT, having reached an earlier peak of $9,481.5, the highest since April 3. It has gained more than 15% since hitting a 17-month low at $8,105 earlier this month.
Both Trump and U.S. Treasury Secretary Scott Bessent have separately suggested there could be a de-escalation in U.S.-China trade tensions and that any trade deal with China could “substantially” cut tariffs.
“The market isn’t looking at fundamentals. It’s just reacting to what Trump and other U.S. officials are saying,” a copper trader said, adding that an easing of Trump’s rhetoric against Fed Chair Jerome Powell was also helping sentiment.
Trump backed off from threats to fire Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.
“In view of the fundamental situation, we remain cautious about the further upward potential of the copper price,” Commerzbank said in a note.
Shanghai copper firms as dollar tumbles
Commerzbank cited the International Copper Study Group’s (ICSG) latest monthly bulletin showing a surplus of copper, used in the power and construction industries, in February.
“This is surprising given the fears of a shortage of copper ore, which could lead to a reduction in metal processing,” Commerzbank said.
Copper output in China, the dominant producer of refined metal, jumped 8.6% year on year in March to 1.25 million tons.
Industrial metals markets are watching surveys of purchasing managers in manufacturing for clues to demand prospects. In the euro zone the flash manufacturing PMI index showed shrinking activity in Europe.
In other metals aluminium added 1.4% to $2,413 a ton, zinc was up 1.7% to $2,639 lead rose 0.4% to $1,930, tin was little changed at $31,115 and nickel gained 0.5% at $15,755 a ton.
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