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Copper extends advance on US-China optimism and risk-on tone - BLOOMBERG
(Bloomberg) — Copper (HG=F) gained, pushing higher with other metals, as the US signaled a more conciliatory tone toward China in its trade war.
Three-month futures advanced to around $9,450 a ton in London, after rising 2% on Tuesday. US Treasury Secretary Scott Bessent said the tariff standoff with China cannot be sustained, and the two largest economies would have to find ways to de-escalate. President Donald Trump also said he plans to be “very nice” with Beijing in any trade talks.
The metal’s climb was also aided by a risk-on tone in broader financial markets after Trump backed off from earlier suggestions that he wanted to oust Federal Reserve Chair Jerome Powell. Those remarks had unsettled investors earlier in the week, sending the dollar sharply lower.
Copper’s supply dynamics were also in focus, after the Antamina copper-zinc mine in Peru was shut down for safety reasons following a fatal incident.
After rallying by 11% in the first quarter, copper has had a bumpier ride this month as the US-led trade war stoked concerns about a global slowdown that would hurt demand for industrial commodities. Reflecting that, the International Monetary Fund has sharply lowered forecasts for world growth this year and next, and warned the outlook could deteriorate further.
Copper gained 1% to $9,461 a ton on the London Metal Exchange at 11:53 a.m. local time, on track for the highest close since April 2. Zinc, aluminum, lead and nickel also climbed.
In ferrous markets, iron ore futures added 1.6% to $100.20 a ton in Singapore, after dropping 0.8% on Tuesday.
—With assistance from Mark Burton.
