Copper Prices Decline Amidst Trade War and Dollar Strength

In London, copper prices experienced a downturn on Thursday, influenced by a strengthening dollar. Trading activity remained subdued leading up to the Easter holiday, with no clear signs of easing tensions in the trade dispute between the U.S. and China.

The benchmark three-month copper on the London Metal Exchange (LME) decreased by 0.9%, settling at $9,120.50 per metric ton as of 1019 GMT.

The metal, sensitive to economic growth, has seen a 6% drop this month. This decline is attributed to the escalating trade conflict between the world’s two largest economies, which has resulted in significant import tariffs and poses a threat to global economic expansion and demand for industrial metals.

Analysts at Citi noted in a research brief that while tariffs might have reached their peak, de-escalation is not yet apparent.

China’s commerce ministry urged the U.S. to cease applying “extreme pressure” and demanded respect in trade negotiations. However, both nations remain at odds regarding the initiation of discussions. China is the world’s leading consumer of metals.

Citi projects a softening of global growth to 2.1% this year, a decrease from nearly 3% the previous year. Growth in 2026 is expected to recover only slightly to 2.3%, as the prolonged effects of U.S. tariffs continue to unfold.

Other Metals Performance:
  • LME aluminium edged down by 0.3% to $2,375 per ton. Already subject to a 25% U.S. import tariff, it has decreased by 7% since the start of the year.
  • LME zinc decreased by 0.8% to $2,561 a ton.
  • Lead fell by 0.2%, reaching $1,904.
  • Nickel experienced a 0.6% decrease, settling at $15,595.
  • Tin, however, bucked the trend, rising by 0.6% to $30,880.

Major producer Alcoa stated on Wednesday that even with the full reactivation of idle smelting capacity in the U.S., the country would still face a shortfall of 3.6 million tons of aluminium. They anticipate that U.S. tariffs on aluminium imports from Canada will cost the company $90 million this quarter.

The LME market will be closed on Friday and Monday for the Easter holiday.