Copper prices edged higher on Friday as a weaker U.S. dollar and easing trade tensions between the U.S. and China boosted investor sentiment and global demand expectations.
Benchmark three-month copper on the London Metal Exchange (LME) climbed 0.8% to $9,573.50 per metric ton, extending its monthly gain to 5%. The rise follows a 90-day tariff truce between Washington and Beijing, offering a temporary pause in the trade war and rollback of tariffs imposed since April.
“We are in a situation where the U.S. continues to perform unexpectedly well, trade tensions are easing, and recent macro data in China was pretty good,” said Dan Smith, managing director at Commodity Market Analytics. “All of this is good for the risk appetite in base metals for now.”
Adding to the momentum, the U.S. dollar headed for its first weekly decline in five weeks, making dollar-priced metals more affordable for foreign buyers. Meanwhile, China’s onshore yuan reached its strongest level since November, enhancing the importing power of the world’s top metal consumer.
On the supply side, copper inventories fell across major exchanges:
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Shanghai Futures Exchange: -9% to 98,671 tons
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LME-registered warehouses: -8% to 164,725 tons
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COMEX inventories: +3% to 174,607 tons
The cash-to-three-month spread on the LME showed a $16 per ton premium, suggesting near-term tightness in supply but remaining far below the $49 peak seen earlier in May.
Other metals also showed strength:
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Aluminium: +0.5% to $2,467.50
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Zinc & Nickel: +0.2% to $2,701.50 and $15,525 respectively
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Lead & Tin: +0.9% to $1,987 and $32,650 respectively
These gains reflect broader market optimism supported by easing geopolitical risks and improved macroeconomic data.
