London copper prices increased on Tuesday. Strong economic data from China helped offset concerns about potential global trade disruptions. Investors closely monitored the situation as the U.S. prepared new tariffs.
China's manufacturing sector demonstrated positive momentum in March, as evidenced by the Caixin/S&P Global purchasing managers' index (PMI). The index climbed to a level of 51.2 during the month. This figure represents an improvement compared to the reading of 50.8 recorded in February. This upward trend in the PMI signals an expansion in manufacturing activity within China. The increase in the PMI reading specifically suggests that the underlying factors driving manufacturing output, such as demand, are strengthening. Specifically, the expansion was fueled by growing demand within the Chinese economy, as well as a robust influx of new export orders.
The positive data coming out of China's manufacturing sector had a notable impact on commodity markets. Copper prices, in particular, benefited from the encouraging economic signals. Despite the presence of increasing global trade tensions, the price of copper found support, bolstered by the indication of strong demand from a major consumer like China.
The three-month copper benchmark on the London Metal Exchange (LME) climbed 0.2% to $9,733 per metric ton by early Tuesday. Traders remained cautious as they awaited further tariff announcements from the U.S. government.
Additionally, a shortage of copper concentrate further supported London copper prices. Lower copper treatment and refining charges (TC/RCs) signaled tight supply conditions. The Shanghai Metals Market reported TC/RCs at -$24.14 per ton on March 28, reflecting supply constraints.
While copper saw gains, other metals experienced varied movements. On the LME, aluminium added 0.3% to $2,540 per ton, while zinc rose 0.2% to $2,857 per ton. However, lead dropped 0.1% to $2,010 per ton. Meanwhile, nickel surged 0.7% to $16,035 per ton.
In the Shanghai Futures Exchange (SHFE), copper slipped 0.5% to 79,890 yuan per ton. Other SHFE metals also recorded minor losses, with aluminium falling 0.4% and nickel losing 1.1%.
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London copper prices rose as strong China data offset U.S. tariff concerns. Discover how market trends impact copper and other metals.
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