Copper Hits 10-Week High as Trump Signals China Deal Hopes
Copper prices reached a ten-week high on Friday, driven by investor optimism following President Donald Trump’s comments about a possible trade agreement with China.
The London Metal Exchange (LME) saw three-month copper prices climb 0.4% to $9,270 per metric ton by 1700 GMT, peaking at $9,355.50 earlier in the day. Trump’s remarks, broadcast on Thursday evening, expressed a preference for avoiding tariffs on China.
He also suggested that a trade deal with the world’s second-largest economy was feasible. These statements, along with Trump’s call for lower interest rates, triggered a decline in the dollar index.
As a result, the dollar index is on course for its most significant weekly drop in over a year. The weakening U.S. dollar made dollar-denominated commodities more attractive to buyers using other currencies.
However, Carsten Menke, an analyst at Julius Baer in Zurich, cautioned that the upside for copper and other base metals might be limited in the short term, despite market optimism.
Menke explained that the situation with “Trump 2.0” could be more complex. This depends on how quickly opponents are willing to make concessions.
He added that their base case suggests tariffs are not aimed at improving the U.S. fiscal position or ensuring fair trade. Instead, they are intended to achieve other objectives.
U.S.-China Trade Relations and Commodities Market Impact
Trade data indicates that U.S. companies have been stockpiling goods from China, fearing potential price increases due to tariffs. Menke suggested this could lead to a hangover effect in China‘s industrial production during the first few months of the year.
While copper prices rose, other metals on the LME showed mixed performance. Nickel experienced the poorest performance, falling 0.2% to $15,630 per ton. This decline followed Indonesia’s announcement of a higher mining quota for 2025, which eased supply concerns.
Aluminum and tin saw gains, while zinc and lead declined. The copper market’s response to Trump’s comments highlights the ongoing impact of U.S.-China trade relations on global commodity prices.
As investors closely monitor developments, the potential for a trade agreement continues to influence market sentiment. It is also affecting pricing dynamics in the metals sector.
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Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
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