Copper prices experienced a decline in London on Thursday, primarily influenced by a stronger dollar. However, trading activity remained subdued ahead of the four-day Easter break.
Concerns regarding the ongoing trade conflict between the U.S. and China further contributed to the cautious market sentiment, with analysts noting no signs of de-escalation. The benchmark three-month copper contract on the London Metal Exchange (LME) fell by 0.8%, trading at $9,132 per metric ton.
This decline marks a loss of 5% for copper this month, as the escalating trade war has triggered significant import tariffs between the two economic powerhouses. Analysts at Citi highlighted that while tariffs may have peaked, a resolution appears distant.
China’s commerce ministry reiterated calls for the U.S. to cease exerting “extreme pressure” and emphasized the need for respect in trade negotiations. Despite this, both nations have shown little progress in initiating talks.
Citi projects a slowdown in global growth, estimating it will drop to 2.1% for the year, down from nearly 3% last year. The anticipated growth for 2026 is only expected to rebound slightly to 2.3%, as the repercussions of the U.S. tariffs continue to unfold.
Since the announcement of tariffs in April, copper has fallen below all major moving averages, with the nearest resistance at the 100-day moving average of $9,284. The metals market faced added pressure from a bounce in the U.S. dollar, which made dollar-denominated commodities more expensive for foreign buyers.
Additionally, LME aluminium fell by 0.7% to $2,366 a ton, while LME zinc dropped by 0.8% to $2,561 a ton. Other metals also experienced slight variations, with lead edging up by 0.1% and nickel and tin both declining.
Notably, the LME market will close for the Easter holiday on Friday and Monday.