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LME copper rises on weaker dollar and strong China data

03 Mar, 2025

London copper rose on Monday, supported by a weaker dollar and strong economic data from top metals consumer China. Three-month copper on the London Metal Exchange (LME) gained 0.5% to $9,402.5 a metric ton by 0435 GMT.

The dollar index eased 0.4% from a two-week high hit in the previous session.

A weaker dollar makes greenback-priced commodities cheaper for buyers holding other currencies.

China’s manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production, an official factory survey showed on Saturday.

China’s economic health is crucial for base metals demand because the country is the world’s largest consumer and relies heavily on these metals for its vast manufacturing sector.

US President Donald Trump sowed confusion last week when he mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later reaffirmed the Tuesday deadline.

He said he would add another 10% tariff on Chinese goods on Tuesday, effectively doubling 10% duties imposed on February 4.

“I think the markets are responding to further rhetoric about US tariffs on base metals and the hope that China’s NPC might yield further economic stimulus,” said Kyle Rodda, senior financial markets analyst at Capital.com.

Copper rallies to one-month peak on signs of improving demand

China’s National People’s Congress (NPC), scheduled to meet on March 5, is expected to unveil more stimulus, given the looming tariff war and concerns about slow demand.

LME aluminium was up 0.5% at $2,619 a ton, zinc gained 1.5% to $2,834, nickel rose 1.7% to $15,700, tin firmed 0.5% to $31,455 and lead rose 0.2% to $1,996.

SHFE aluminium rose 0.2% to 20,695 yuan ($2,840.14)a ton, SHFE copper firmed 0.2% to 77,170 yuan, zinc climbed 1.1% to 23,755 yuan, nickel eased 0.1% to 126,980 yuan, lead gained 0.6% to 17,265 yuan and tin rose 0.3% to 255,900 yuan.

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