The edge of the copper rose tighter, focusing on US-China trade talks
The price of copper rises in London on Friday, supported by a weaker dollar and a tighter nearby supply, reflected in the premium for the closest copper contract to those who are further away throughout the maturity reaching the highest level of two and a half years.
Benchmark Copper Three Months Hg1! In the London Metal Exchange (LME) rose 0.1% to $ 9,443 per metric ton by 0955 GMT.
US President Donald Trump said on Thursday that he hoped that there would be substantive negotiations between the United States and China in trading this weekend and predicted that US sentences at Beijing 145% were likely to fall.
“Talks provide the potential for de-escalation but we do not have a strong opinion about what can be achieved in the short term. The faster they can reduce, the better,” said Ben Davis, European metal head and mining research at RBC Capital Markets.
Trade tariffs raises long -term risk of global demand for metals that depend on economic growth.
However, the US-Chinese trade conflict and investigation into copper in the US reduced the short-term availability of red metal at the Shanghai Futures Exchange (SHFE) and in the LME system by attracting more copper to Comex’s warehouse.
Copper inventory in the warehouse monitored by SHFE (Cu-Stx-SGH) fell 9.6% this week. These shares have fallen 70% since the end of February, deepening the Premium of the Copper SHFE Juni Upper contract on October.
In LME, the distribution between LME Cash and three-month copper contract (CMCU0-3) ended Thursday with a premium of $ 46 per ton, the highest since November 2022. It swings from a $ 63 discount in early April as a stock in the registered warehouse LME continues to see Alertflows.
Showing a strong import demand in the top metal of Chinese consumers, Yangshan Copper Premium (SMM-Cuyp-CN) is $ 102 per ton, the highest since December 2023.
“Consumers in China seem to believe that their government will step with stimulus to reduce the impact of tariffs,” Davis said.
Chinese copper concentrate imports reached the highest record in April amid imports of copper and copper products that were not forged.
LME Aluminum Ali1! up 0.6% to $ 2,428 per ton, Seng Znc1! up 1.1% to $ 2,647.5, Lead Lead1! Added 1.6% to $ 1,975.5, and Nickel Nickel1! up 1.1% to $ 15,705, while Tin Ftin1! up 0.1% to $ 31,760.
Source: Reuters
