Copper Prices Fluctuate Amid Tariff Uncertainty

London: Copper prices experienced fluctuations on Thursday, remaining just below a three-week high. A weaker dollar provided support, but ongoing uncertainty surrounding U.S. tariffs created headwinds.

Benchmark copper on the London Metal Exchange (LME) increased by 0.4%, reaching $9,418 per metric ton by 1000 GMT. During the prior session, it had touched $9,481.50, marking its highest level since April 3.

LME copper has appreciated by over 15% after hitting a 17-month low of $8,105 earlier this month.

An analyst at Saxo Bank in Copenhagen commented, “It’s hard to discern clear market direction currently. The tariff-related optimism that spurred the risk-on rally earlier in the week has seemingly diminished.”

Market activity was subdued as investors assessed the latest developments in the trade relationship between the United States and China, a major consumer of metals. A U.S. official stated on Wednesday that the existing high tariffs between the two nations are unsustainable.

The analyst added, “Resolving trade issues with China will be a protracted process, and the potential economic repercussions may be unavoidable.”

Copper’s Recent Peak

U.S. Comex copper futures saw a rise of 0.5% to $4.87 per pound, elevating the premium over LME copper to $1,314 a ton.

The premium has recovered considerably from $480 on April 4, when traders holding long positions on Comex were compelled to liquidate, according to the analyst.

A softening dollar provided underlying support to industrial metals. The dollar index declined after U.S. President Donald Trump elected not to dismiss the Federal Reserve head and appeared to moderate his stance on China.

A weaker U.S. currency generally makes commodities priced in dollars more attractive to buyers using other currencies.

Other Metals Performance

In terms of other metals, aluminium increased by 0.4% to $2,442 a ton, zinc rose by 1.5% to $2,679, lead went up by 0.6% to $1,958.50, tin advanced by 1.5% to $31,770, and nickel gained 0.9% to reach $15,805.