Copper prices rose on Friday and headed for modest weekly gains, as potential U.S. tariff talks with top consumer China eased trade concerns.
Three-month copper on the London Metal Exchange was up 1.9% to $9,378 per metric ton, as of 0704 GMT. It has gained 0.1% this week.
“Copper edged higher amid signs of progress on trade deals between the U.S. and other nations,” said ANZ.
Beijing is “evaluating” an offer from Washington to hold talks over U.S. President Donald Trump’s crippling tariffs, China’s Commerce Ministry said on Friday, signalling a potential de-escalation in the trade war that has roiled global markets.
Trump said on Wednesday he believed there was a “very good chance” his administration could do a deal with China.
Still, U.S. manufacturing contracted further in April while tariffs on imported goods were straining supply chains, data showed on Thursday.
Moreover, the U.S. economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs.
While Chinese policymakers can accelerate the rollout of stimulus to help offset the weakness of export-driven demand, this may do little to shield copper from the broader impact of weaker economic growth globally, ANZ added.
In other London metals, aluminium added 0.8% to $2,436 a ton, zinc rose 1.7% to $2,621, lead gained 0.6% to $1,963.5, tin advanced 1.5% to $30,225 and nickel inched up 0.3% to $15,300 a ton.
China’s financial markets are closed from May 1-5 for a public holiday. Trading will resume on Tuesday, May 6.
Source: Reuters
