Onome Amuge
Copper prices rose to their highest level in more than a year on Monday, buoyed by a weaker dollar and renewed optimism over US-China relations after the two countries struck a framework agreement on the future of social media app TikTok.
Benchmark three-month copper on the London Metal Exchange rose 1.1 per cent to $10,180 a tonne, having earlier touched $10,192.50, its strongest level since June 2024.
The rally comes despite downbeat Chinese economic data, underscoring the market’s focus on policy support and improving trade ties rather than near-term weakness in demand. “There’s been a focus on the trade talks because part of the economic weakness in China has been driven by the tariffs. This week the theme is stimulus, both in China after poor data and in the US with a Fed rate cut expected,” said Ole Hansen, head of commodity strategy at Saxo Bank. “
The agreement over TikTok, due to be confirmed in a call between President Donald Trump and President Xi Jinping, was read by investors as a sign of thawing relations between Washington and Beijing. For metals traders, the development rekindled hopes that a broader deal on trade tariffs may follow, potentially lifting Chinese industrial demand.
China accounts for more than half of global refined copper consumption, and tariffs have weighed on factory activity and investment. Data released earlier showed growth in the country’s factory output and retail sales in August had slowed to their weakest pace since 2023.
Adding to the bullish tone was a decline in the US dollar index ahead of a week packed with central bank meetings, including an expected interest rate cut from the Federal Reserve. A softer dollar makes commodities priced in the US currency cheaper for buyers using other currencies, amplifying demand from non-dollar markets.
The most-traded copper contract on the Shanghai Futures Exchange also rose, closing daytime trading 0.4 per cent higher at Rmb81,000 ($11,372) a tonne.
LME copper has gained 16 per cent so far this year but has repeatedly failed to sustain momentum above $10,000 a tonne. Analysts said prices received fresh impetus after breaching a double-top technical resistance ,marked by previous highs at $10,164.50 in March and $10,158 in September last year. “Breaking that ceiling has unlocked a wave of speculative buying,” Hansen added.
Trading in other metals was mixed as LME aluminium rose 0.5 per cent to $2,702.50 a tonne, its strongest since late July. Zinc gained 0.7 per cent to $2,978, its highest since March, while nickel edged up 0.1 per cent to $15,410. By contrast, lead slipped 0.8 per cent to $2,002 and tin shed 0.9 per cent to $34,670.
