Base metals in London experienced an uptick on Thursday, buoyed by a more optimistic market outlook following U.S. President Donald Trump’s announcement to temporarily suspend recent tariffs on several countries. The benchmark three-month copper on the London Metal Exchange (LME) increased by 3.5%, reaching $8,919 per metric ton as of 0742 GMT.
This rise comes after a significant downturn, with LME copper having slid 12% from its high of $10,164.50 on March 26, a peak that marked its highest level in over nine months. In the Shanghai Futures Exchange (SHFE), the most-traded copper contract rose 3.9%, reaching 75,300 yuan (equivalent to $10,254.66) per metric ton, recovering from an eight-month low seen on Wednesday.
Trump’s announcement of a 90-day halt on many new tariffs marked a surprising pivot after a dramatic sell-off in the markets that cost investors trillions of dollars globally. Nevertheless, despite this temporary reprieve, Trump intensified pressure on China by increasing tariffs on the country’s major metal imports from 104% to 125%.
This move followed China’s decision to impose higher duties on U.S. goods, raising its tariffs to 84%. “Trump’s unexpected change in tariff policy surprised the market,” noted a trader.
“While it has instilled some renewed confidence among investors who were initially worried about economic conditions, this boost may be short-lived given his erratic approach.” Other metals also saw gains, with SHFE aluminium climbing 3.9% to 19,805 yuan per ton, zinc increasing by 2.9% to 22,705 yuan, lead rising by 2.0% to 16,800 yuan, and nickel up by 2.3% at 121,600 yuan.
In the LME, aluminium rose 2.7% to $2,378 per ton, while lead grew by 3.2% to $1,901. Tin and zinc also saw significant increases, with tin gaining 6.3% to $31,710 and zinc up by 2.8% to $2,629.
Nickel increased by 4.5% to $14,720 a ton.