Copper Prices Rise Amid Trade Talk Hopes

Copper prices experienced an upswing on Friday, setting the stage for moderate weekly gains. This increase is attributed to prospective discussions between the United States and China regarding tariffs, which have eased concerns about trade tensions.

On the London Metal Exchange, three-month copper prices saw a 2% increase, reaching $9,389 per metric ton as of 0438 GMT. Over the course of the week, copper has edged up by 0.1%. According to ANZ, the rise in copper prices is linked to encouraging indications of advancement in trade agreements involving the US and other countries.

The United States has reportedly engaged China in an effort to initiate talks concerning the 145% tariffs imposed by former President Donald Trump. China’s Commerce Ministry has indicated openness to these discussions, hinting at a possible reduction in trade conflicts.

Earlier in the week, Trump voiced optimism about the potential for his administration to reach an understanding with China.

However, recent data reveals a contraction in US manufacturing activity in April, with tariffs on imported goods putting a strain on supply chains. Furthermore, the US economy experienced a contraction in the first quarter, primarily due to a surge in imports as businesses sought to avoid increased expenses resulting from tariffs.

ANZ suggests that while Chinese policymakers have the means to expedite the implementation of stimulus measures to counter the impact of decreased export demand, these actions may not fully protect copper from the broader effects of a weakening global economy.

Other Metals Performance

  • Aluminum increased by 0.4% to $2,425.5 a ton.
  • Zinc went up by 1.5% to $2,616.5.
  • Lead rose by 0.8% to $1,967.
  • Tin surged by 2.2% to $30,430.
  • Nickel saw a slight increase of 0.1% to $15,265 a ton.

It is noted that China’s financial markets are closed for a public holiday from May 1st to 5th, with trading activities scheduled to resume on Tuesday, May 6th.