Copper prices inched higher on Friday, extending gains for the week as a temporary tariff truce between the US and China provided a short-term lift to sentiment. However, traders remained cautious amid lingering uncertainty over long-term demand and potential new tariffs on copper imports.
Weekly Copper Gains Tempered by Uncertainty
On the London Metal Exchange (LME), benchmark copper rose 0.1% to $9,585 per metric ton as of 02:38 GMT. Over the week, prices were up approximately 1.5%. Similarly, the Shanghai Futures Exchange (SHFE) saw copper climb 0.1% to 78,430 yuan ($10,889.43) per ton, posting a weekly gain of 1%.
The momentum follows the 90-day pause in retaliatory tariffs agreed by Washington and Beijing, easing immediate fears of escalation. Yet, market sentiment remains divided. A Shanghai-based metals trader noted that exporters in China were rushing to ship cargoes, indicating a lack of confidence in the durability of the truce.
“Chinese traders are happy about the 90-day pause, but the market has remained uncertain about what is going to happen after the 90 days,” she added.
Mixed Metals Market Reflects Cautious Sentiment
Other LME-traded base metals showed mixed trends:
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Aluminium: +0.1% to $2,492 per ton
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Zinc: -0.1% to $2,723 per ton
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Lead: -0.4% to $1,996.5 per ton
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Tin: +0.1% to $33,000 per ton
In Shanghai, the sentiment was similarly cautious:
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Aluminium: -0.3% to 20,185 yuan/ton
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Zinc: -0.6% to 22,595 yuan/ton
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Lead: -0.5% to 16,920 yuan/ton
Analysts expect SHFE copper prices to hover around 78,000–79,000 yuan/ton in the near term, citing mixed market cues and ongoing geopolitical concerns.
Market Drivers: Tariff Pause vs Structural Demand Risk
The short-term support from the truce has been partially offset by:
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Concerns over longer-term demand from key sectors such as construction and manufacturing.
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US investigations into new copper import tariffs, launched earlier this year.
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Subdued global growth expectations, pressuring industrial metals broadly.
Additionally, revived expectations of US rate cuts have supported broader financial markets, including bonds and equities, but commodity markets are showing a more measured response.
