Base Metals Prices Climb on Easing U.S.-China Tensions and Strong Chinese Demand

Base Metals Prices Climb on Easing U.S.-China Tensions and Strong Chinese Demand

Base metals continued their upward momentum, supported by easing trade tensions between the United States and China, as well as signs of stronger-than-expected demand from China. On the London Metal Exchange (LME), three-month copper rose by 0.7% to $9,566.50 per metric ton, while aluminum increased by 0.3% to $2,478.50 per ton.

“Reduced uncertainty, even if only temporary, resulted in improved global risk sentiment,” said Sam Crittenden, an analyst at RBC Capital Markets. The market welcomed the 90-day tariff truce agreed between the world’s two largest economies, which helped ease concerns over a prolonged trade war.

Adding to the bullish sentiment, the U.S. dollar retreated after reaching a one-month high in the previous session, making dollar-denominated commodities more attractive to buyers using other currencies.

Further support came from China, where recent data revealed that total copper imports in April jumped 13% year-on-year, reflecting robust domestic demand. “There are further encouraging signals from China,” ANZ Research wrote, noting that the country’s industrial activity remains resilient despite global uncertainties.

Market participants are now closely watching developments in the U.S.-China negotiations to see if the temporary truce can lead to a more lasting resolution, which would continue to support base metal prices in the near term.