Mixed Trading in London Metals Amid US-China Trade Optimism

Shanghai: Prices for metals traded in London displayed a mixed performance on Monday. A degree of optimism stemming from the potential easing of trade tensions between the United States and China provided some support to investors, though reservations about the stability of negotiations remained.

Benchmark copper on the London Metal Exchange (LME) experienced a decrease of 0.5%, reaching $9,327 per metric ton by 0742 GMT.

The improvement in relations began with China’s decision to exempt specific imports from the U.S. from its retaliatory tariffs. This action is viewed as a signal that the trade dispute between the world’s two largest economies may be diminishing.

Last week, the U.S. administration signaled a willingness to de-escalate the trade conflict. Former U.S. President Donald Trump confirmed that discussions on tariffs were in progress with Chinese officials.

The prolonged trade conflict has generated concerns about a possible global economic downturn, prompting investors to closely monitor related developments.

A trader noted, “The market’s direction is currently influenced by U.S.-China trade discussions. Despite the prevailing optimism, caution remains due to the potential for rapid shifts in sentiment,” emphasizing the continuing uncertainties surrounding the negotiations.

In other metals trading, aluminum increased by 0.1% to $2,430 per ton, while zinc declined by 0.07% to $2,628. Lead saw a rise of 0.1% to $1,946, tin decreased by 0.3% to $31,870, and nickel experienced a decrease of 0.2% to $15,520 per ton.

The most actively traded copper contract on the Shanghai Futures Exchange (SHE) decreased by 0.7% to 77,110 yuan ($10,567) per metric ton.

SHE aluminum declined by 0.3% to 19,900 yuan per ton, zinc fell by 1.5% to 22,405 yuan, and lead decreased by 0.7% to 16,890 yuan. Nickel saw a decrease of 1.1% at 124,310 yuan, while tin decreased by 0.7% to 260,490 yuan.