LONDON: Copper prices rose on Monday, supported by the latest economic stimulus plan from top metals consumer China and a weaker dollar, with traders awaiting more clarity on US tariff risks and their effect on global growth.
Benchmark three-month copper on the London Metals Exchange added 0.4% to $9,817 a metric ton in official open-outcry trading, having touched $9,850 on Friday for its highest since October 9.
China released fresh data on Monday after the previous day’s announcement of a “special action plan” to boost domestic consumption. “The latest data showed Chinese consumption, investment and industrial production exceeded estimates for January-February,” said ING commodities analyst Ewa Manthey.
“Still, the property sector, a pillar for metals demand, is yet to bottom out. China’s new home prices and existing home prices continued to slide month on month.”
In the broader picture for growth-dependent metals, US import tariffs and escalating global trade wars remained the main longer-term downside risk for the sector.
US President Donald Trump said he has no intention of creating exemptions on steel and aluminium tariffs and that reciprocal and sectoral tariffs will be imposed on April 2.
Trump previously ordered an investigation into possible new tariffs on copper, inflating the premium between the most active US Comex copper futures and the LME contract.
The dollar hovered near a five-month low on Monday. US retail sales rebounded in February, suggesting that the economy continued to grow in the first quarter, though at a moderate pace. The focus is now on Wednesday’s US Federal Reserve meeting, at which the central bank is expected to hold interest rates steady.
Meanwhile, LME aluminium was up 0.5% at $2,693.5 a ton in official activity. Stocks in the LME-registered warehouses fell by 4,525 tons to 497,275 tons, the lowest since May, daily LME data showed. China’s aluminium production rose 2.6% to 7.32 million tons in January-February. In other metals, zinc was steady at $2,971.50 a ton, lead gained 1.2% to $2,093, tin fell 0.5% to $35,100 and nickel was up 0.3% at $16,525.
