Copper prices in London saw a slight increase on Tuesday. The market reacted to expectations of rising copper supplies heading to the U.S. However, a stronger U.S. dollar limited gains. The benchmark three-month copper on the London Metals Exchange (LME) gained 0.2%, reaching $9,975.5 per metric ton.
Recently, U.S. President Donald Trump initiated an investigation into potential tariffs on copper imports. The goal is to boost domestic production of this crucial metal. Copper plays a key role in electric vehicles, military equipment, and the power grid. Traders are closely monitoring developments on this issue. Any changes in tariffs could significantly impact the copper market.
Another critical event for copper markets is the upcoming China Smelters Purchase Team (CSPT) meeting. Scheduled for next Monday, this meeting will determine the buying floor price for Q2. Analysts expect discussions on potential production cutbacks, which could influence supply levels.
On Tuesday, the U.S. dollar hit a three-week high against the Japanese yen. A strong dollar makes commodities priced in USD more expensive for international buyers. This limited copper’s gains despite rising demand expectations. Strong U.S. services data also supported the dollar’s strength, adding pressure on metal prices.
Beyond London copper prices, other base metals experienced mixed movements on the LME. Aluminium eased slightly, while lead, zinc, tin, and nickel posted small gains. In the Shanghai Futures Exchange (SHFE), copper prices jumped 0.9%, showing strong demand in China. Meanwhile, SHFE aluminium and tin recorded slight losses.
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London copper prices edged higher, but a strong U.S. dollar limited gains. Market focus remains on U.S. tariffs & China's upcoming meeting.
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