SHANGHAI: Copper prices edged higher on Tuesday as signs of US-China trade talks boosted sentiment, though lingering concerns about the broader economic impact from trade disputes limited gains. Benchmark copper on the London Metal Exchange (LME) was up 0.7% to $9,431 a metric ton, as of 0130 GMT.
US Treasury Secretary Scott Bessent on Monday defended Trump’s tariffs, emphasizing that his broader agenda including tax cuts would eventually lead to long-term economic growth.
Beijing is “evaluating” an offer from Washington to hold talks over US President Donald Trump’s 145% tariffs, China’s Commerce Ministry said on Friday.
The Commerce Ministry said the United States has approached China to seek talks over Trump’s tariffs and Beijing’s door was open for discussions, signalling a potential de-escalation in the trade war.
“It doesn’t seem to be a smooth journey for trade talks and investors are growing increasingly worried about potential negative effects on worldwide economic expansion and subsequent metal demand,” a trader said.
The first quarter saw the US economy shrink for the first time in three years amid a flood of imports to beat Trump’s tariffs, and the International Monetary Fund has forecast that US GDP will grow only 1.8% in 2025.
Copper rallies to one-month peak on signs of improving demand
In other London metals, aluminium rose 0.6% to $2,445 a ton, zinc rose 1.4% to $2,645, lead added 0.6% to $1,948, tin was up 3.6% to $31,795 and nickel rose 1.2% to $15,665 a ton.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) was flat at 77,570 yuan ($10,669) per ton.
SHFE aluminium lost 0.7% to 19,850 yuan a ton, zinc lost 0.5% to 22,385 yuan, lead fell 0.5% to 16,765 yuan, nickel rose 0.4% to 124,500 yuan and tin was up 0.7% to 260,000 yuan.