Copper Prices Rise Amid Trade Deal Hopes

London copper prices experienced a slight increase on Thursday after indications from U.S. President Donald Trump suggested a possible resolution in trade relations with China. This development signals a potential easing of tensions with a major consumer of metals. However, a strengthening U.S. dollar and concerning U.S. economic data somewhat restricted further gains.

Benchmark copper on the London Metal Exchange (LME) saw a 0.4% increase, reaching $9,161.5 per metric ton as of 0611 GMT.

President Trump mentioned on Wednesday that there are “potential” trade agreements being considered with India, South Korea, and Japan. He also expressed optimism about reaching a deal with China.

Simultaneously, the dollar’s value increased on Thursday due to disappointing U.S. economic figures. Investors are closely observing developments that suggest a possible de-escalation of the trade conflict.

A stronger dollar typically increases the cost of commodities priced in dollars for buyers using other currencies.

However, recent data revealed that the U.S. economy contracted in the first quarter, marking the first decline in three years. This contraction was attributed to a surge in imports as businesses attempted to avoid higher tariff costs, which negatively impacted market sentiment.

This decline also highlighted the potentially disruptive effects of President Trump’s trade policies.

Expert Analysis

According to ANZ Research, recent data indicates an economic slowdown in the United States. The reduced pace of hiring in the private sector, coupled with a more significant-than-anticipated decrease in GDP, points to increasing risks of a recession.

Other Metals Performance
  • Aluminum decreased by 0.1% to $2,397 per ton.
  • Zinc increased by 0.08% to $2,594.5 per ton.
  • Lead decreased by 0.15% to $1,954.5 per ton.
  • Tin decreased by 0.2% to $31,300 per ton.
  • Nickel decreased by 0.6% to $15,330 per ton.

The mainland China market will be closed for a five-day Labour Day holiday starting on May 1.