Shanghai copper prices rose on Monday, as risk sentiment improved after U.S. President Joe Biden and congressional Republican Kevin McCarthy agreed to suspend the government’s debt ceiling.

The most-traded July copper contract on the Shanghai Futures Exchange rose 1.5% to 64,850 yuan ($9,382.10) a tonne, aluminium advanced 1% to 18,045 yuan a tonne and zinc climbed 2.1% to 19,375 yuan a tonne.

McCarthy and Biden forged an agreement on Saturday to avert an economically destabilising default to suspend the $31.4 trillion debt ceiling until 2025.

The deal will now have to passes through the narrowly divided Congress and, if approved, will prevent the U.S. government from defaulting on its debt.

SHFE nickel decreased 0.9% to 159,750 yuan a tonne, lead eased 0.1% to 15,235 yuan a tonne, while tin edged up 0.1% at 200,010 yuan a tonne.

Subdued demand pushes copper to multi-month low

The London Metal Exchange was closed for a public holiday.

SHFE copper inventories fell to 86,177 tonnes on Friday, the lowest since Jan. 6. However, stockpiles of the metal in LME-approved warehouses rose to 97,725 tonnes on Thursday, their highest since November 2022.

Meanwhile, profits at China’s industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery.