SHANGHAI: Copper prices in London rose on Tuesday, as positive Chinese economic data outweighed concerns about a potential global trade war triggered by impending reciprocal tariffs from U.S. President Donald Trump.
The Caixin/S&P Global manufacturing PMI released on Tuesday climbed to 51.2 in March from 50.8 in the previous month, driven by increased demand and strong export orders, reflecting growth in manufacturing despite potential threats from the escalating U.S. trade war.
The benchmark three-month copper on the London Metal Exchange (LME) had risen 0.5% to $9,755 per metric ton as of 0358 GMT.
Trump said on Sunday that the reciprocal tariffs he plans to introduce this week will apply to all nations.
“Everyone is closely watching what President Trump is set to announce tomorrow. This has led to a risk-off sentiment due to the looming uncertainties,” a base metals trader said.
Copper prices also found support from a shortage of copper concentrate, which has resulted in negative copper concentrate processing treatment and refining charges (TC/RCs).
Copper hits two-week low on tariffs, but China data supports
TC/RCs, a key source of revenue for smelters, are a gauge of availability for copper concentrates. Lower TC/RCs imply tight supply.
Shanghai Metals Market copper concentrates TC/RC index was -$24.14 per ton and -2.41 cents per pound on March 28.
Meanwhile, tin prices on the Shanghai Futures Exchange were the outperformer, rising by 0.5% to 287,600 yuan, due to fears of supply disruptions from an earthquake in tin-rich Myanmar last Friday.
Among other metals, LME aluminium added 0.4% to $2,543.5 a ton, lead eased 0.2% to $2,015, zinc rose 0.5% to $2,867, tin lost 0.2% to $36,585 and nickel was up 1.6% to $16,175 a ton.
SHFE copper slid 0.3% to 80,090 yuan ($11,023.94)a ton, SHFE aluminium was flat at 20,540 yuan a ton, zinc added 0.3% to 23,590 yuan, lead rose 0.1% to 17,435 yuan, nickel lost 0.3% to 130,080 yuan.
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