Copper prices remained stable in London on Wednesday, reflecting an increased risk appetite across financial markets. This trend followed U.S. President Donald Trump’s recent decision to ease tariffs, although a stronger dollar dampened potential gains.
Three-month copper on the London Metal Exchange was steady at $9,593.5 per metric ton at 0214 GMT. Similarly, the most-traded copper contract on the Shanghai Futures Exchange (SHFE) saw a modest increase of 0.1%, reaching 78,390 yuan ($10,886.29) per ton.
Market analysts noted that copper prices have been closely aligned with overall market sentiment. Kelvin Wong, a senior market analyst at OANDA, remarked that trade optimism has positively influenced the U.S. stock market, consequently affecting copper prices as well.
Trump’s recent announcement on Sunday, which rolled back the threat of imposing 50% tariffs on EU imports, has intensified this risk sentiment and restored a July 9 deadline for negotiations. Additionally, data released on Tuesday indicated that U.S. consumer confidence improved in May, breaking a five-month streak of decline due to easing tensions in the trade war between the U.S. and China.
However, the dollar index continued to rise, making dollar-denominated assets pricier for holders of other currencies. In March, the global refined copper market reported a surplus of 17,000 metric tons, a significant decrease from the 180,000 metric tons surplus noted in February, according to the International Copper Study Group (ICSG).
Among other metals traded on the London exchange, aluminum dipped 0.3% to $2,478.50 per ton, zinc decreased 0.1% to $2,703, lead fell 0.3% to $1,979.5, and nickel declined 0.3% to $15,370. Conversely, tin saw a slight increase of 0.1% to $32,630.
In SHFE trading, aluminum rose 0.5% to 20,165 yuan per ton, while lead, nickel, and tin saw slight decreases.