London copper prices showed a slight increase on Thursday, boosted by a weaker U.S. dollar. As the market monitors ongoing trade discussions between the U.S. and major trading partners, three-month copper on the London Metal Exchange rose nearly 0.4% to $9,656.5 per metric ton. Meanwhile, the most traded copper contract on the Shanghai Futures Exchange remained stable at 78,170 yuan, equivalent to approximately $10,884.46 per ton. The dollar index, which gauges the value of the U.S. dollar against six other currencies, stood at 98.87.
This index has declined roughly 9% this year, indicating it is likely to experience its weakest yearly performance since 2017. A softer U.S. dollar typically makes dollar-denominated commodities more affordable for buyers using other currencies. In the realm of trade, U.S. President Donald Trump described Chinese President Xi Jinping as tough and challenging to negotiate with, highlighting existing tensions after the White House heightened expectations for a phone call between the two leaders. Canada has also signaled potential retaliatory measures, while the European Union announced progress in trade negotiations amid the challenges posed by new U.S. metals tariffs.
According to ANZ, Trump’s significant tariffs on aluminum and steel have led to heightened expectations of potential increased duties on copper as well. In other metal markets, tin on the LME saw a slight decrease of 0.2% to $31,950 per ton after reaching a one-week high due to concerns over supply disruptions from Myanmar’s tin-rich Wa State. Among other London metals, aluminum dipped 0.2% to $2,478 per ton, lead declined 0.4% to $1,983, while nickel edged up by 0.3% to reach $15,440. In Shanghai, SHFE tin was the top performer, advancing 1.5% to 258,900 yuan.