Copper Prices Await Trade Developments and Chinese Demand Signals

Copper prices remained stable on Monday as investors awaited further news regarding trade discussions between the U.S. and China, as well as indications of demand from China, where economic expansion is being hampered by U.S. import duties.

Benchmark copper on the London Metal Exchange (LME) saw little movement, holding at $9,376.50 per metric ton as of 1035 GMT.

While U.S. President Donald Trump maintains that progress has been achieved with China and that he has engaged in discussions with President Xi Jinping, Beijing has refuted claims of ongoing trade negotiations. Furthermore, Treasury Secretary Scott Bessent did not confirm the existence of tariff talks on Sunday.

Analyst Insight

Ewa Manthey, commodities analyst at ING, noted that the metals markets are particularly focused on the impact of tariffs on China, the largest consumer of metals.

She added that with U.S. growth potentially slowing due to tariffs and China already facing challenges in reviving its economy, demand for copper and other industrial metals is likely to decline.

Analysts suggest that additional measures by Chinese authorities to bolster growth and demand could mitigate the downside risks for copper, which is extensively used in the power and construction sectors.

Tariff Uncertainty Weighs on Copper

China has accelerated its stimulus initiatives for the year but is refraining from implementing new measures, opting to maintain a strategic approach while anticipating a shift in Washington’s stance on the protracted trade dispute.

Support for copper prices is stemming from a substantial decrease in copper inventories in warehouses monitored by the Shanghai Futures Exchange (SHFE). These inventories experienced a 32% drop last week, falling to 116,753 tons from the preceding week.

The reduction in SHFE copper stocks is attributed to some Chinese copper consumers switching to refined copper due to limited availability of scrap supplies.

Technical Levels

From a technical perspective, strong support for copper is evident at the 100- and 200-day moving averages, situated around $9,305 and $9,320, respectively.

Industrial metal markets are keenly awaiting the release of purchasing managers’ surveys for China’s manufacturing sector later this week. These surveys are anticipated to indicate a contraction in activity during April.

Other Metals Performance

In terms of other metals, aluminum increased by 0.3% to $2,434.50 per ton, zinc decreased by 0.4% to $2,636.50, lead increased by 1.3% to $1,968.50, tin decreased by 0.1% to $31,950, and nickel increased by 1.1% to $15,710 per ton.