Copper prices climbed for a second day as uncertainty over US trade policy pushed the dollar lower, boosting metals priced in greenbacks.
Copper futures edged toward $US13,000 per tonne on the London Metal Exchange, extending last week’s modest gains as it sits at $US12,964 at time of writing.
The US Supreme Court last week blocked President Donald Trump from using emergency powers to set trade duties. The administration then introduced a 10 per cent global tariff, later raised to 15 per cent.
According to Morgan Stanley, the move could lower the average tariff on Chinese goods from 32 per cent to 24 per cent. Bloomberg said while that may help metal exporters, the relief could prove temporary as trade policy continues to evolve.
Copper has been hovering near record highs since January. Its price has been buffeted by shifting US trade policy, mining disruptions and forecasts for rising demand driven by the global energy transition. Tariffs generally slow economic growth, which can weigh on demand for industrial metals.
Investors are also watching for the return of Chinese traders after the Lunar New Year holiday, with markets reopening on Tuesday. Higher copper prices could reduce physical demand in China, the world’s largest consumer, potentially leading to rising stockpiles.
Other metals were mixed, with zinc steady and tin up 0.6 per cent. As of Monday morning Singapore time, copper was up 0.2 per cent at $US12,983 per tonne, highlighting the market’s cautious optimism amid ongoing trade uncertainties.
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