LONDON: Prices of metals in London rose on Monday after US President Donald Trump rescinded his threat of a 50% tariff on imports from the European Union starting June 1, buoying market sentiment.
Three-month copper on the London Metal Exchange gained 1.19% to $9,614 per metric ton by 0700 GMT, while the most-traded copper contract on the Shanghai Futures Exchange nudged 0.57% higher to 78,270 yuan ($10,909.62) a ton.
On Sunday, Trump agreed to extend his deadline for trade talks until July 9 from the June 1 limit he set on Friday after European Commission President Ursula von der Leyen said the bloc needed more time to “reach a good deal”.
The supply of copper raw materials is currently tight, which may drive copper prices higher in the short term, said broker Hexun Futures. Moreover, copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9% to 98,671 tons last week. Still, tariff uncertainty may continue to restrict the performance of copper prices, said broker Everbright Futures. Also supporting prices was a weaker US dollar, which sank 0.3% to 98.813, extending a 1.9% tumble from last week. A weaker greenback makes dollar-denominated assets more affordable to holders of other currencies.
Among other London metals, aluminium climbed 0.41% to $2,466 a ton, zinc firmed 0.56% to $2,712.5, lead added 1.22% to $1,994 and nickel rose 0.49% to $15,570. Tin firmed 0.89% to $32,665. SHFE aluminium eased 0.05% to 20,155 yuan a ton, lead was up 0.12% at 16,795 yuan, zinc eased 0.52% to 22,185 yuan, nickel edged 0.08% lower to 122,780 yuan, and tin fell 0.24% to 264,050 yuan.
