London copper gains as strong China data offsets tariff concerns
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Copper prices advanced in early London trading on Tuesday, buoyed by stronger-than-expected Chinese manufacturing data that helped counterbalance rising fears of a global trade war. The benchmark three-month copper contract on the London Metal Exchange (LME) rose 0.5% to $9,755 per metric ton by 03:58 GMT, supported by demand optimism and signs of tightening supply.
China’s Caixin/S&P Global manufacturing PMI climbed to 51.2 in March from 50.8 in February, driven by robust export orders and domestic demand. This positive data bolstered sentiment in industrial metals markets, suggesting resilience in the world’s largest consumer of raw materials despite the escalating rhetoric around U.S. trade policy.
President Donald Trump’s announcement of reciprocal tariffs, expected to be unveiled on Wednesday, continues to fuel uncertainty. The broad-based levies are expected to affect multiple trading partners, adding to global risk aversion. According to market participants, the anticipation of the announcement has introduced a cautious tone across base metals, although copper's fundamentals remain supportive.
Tightness in copper concentrate supply further underpinned prices. Treatment and refining charges (TC/RCs) — a key indicator of concentrate availability — turned negative, reflecting severe supply constraints. On March 28, the Shanghai Metals Market index for copper TC/RCs stood at -$24.14 per ton and -2.41 cents per pound, indicating reduced margins for smelters and highlighting the scarcity of feedstock.
Elsewhere in the metals complex, tin on the Shanghai Futures Exchange gained 0.5% to 287,600 yuan, supported by fears of supply disruption following an earthquake in Myanmar, a key tin-producing region. On the LME, aluminium rose 0.4% to $2,543.5 per ton, while lead slipped 0.2% to $2,015. Zinc gained 0.5% to $2,867, tin declined 0.2% to $36,585, and nickel climbed 1.6% to $16,175 per ton.
In Chinese domestic markets, SHFE copper eased 0.3% to 80,090 yuan ($11,024) per ton. SHFE aluminium remained flat at 20,540 yuan, zinc added 0.3% to 23,590 yuan, lead rose 0.1% to 17,435 yuan, and nickel declined 0.3% to 130,080 yuan.
Overall, while geopolitical trade concerns continue to loom, the underlying supply dynamics and resilient demand indicators—particularly from China—are providing crucial support to copper and the broader base metals sector as the second quarter unfolds.
China’s Caixin/S&P Global manufacturing PMI climbed to 51.2 in March from 50.8 in February, driven by robust export orders and domestic demand. This positive data bolstered sentiment in industrial metals markets, suggesting resilience in the world’s largest consumer of raw materials despite the escalating rhetoric around U.S. trade policy.
President Donald Trump’s announcement of reciprocal tariffs, expected to be unveiled on Wednesday, continues to fuel uncertainty. The broad-based levies are expected to affect multiple trading partners, adding to global risk aversion. According to market participants, the anticipation of the announcement has introduced a cautious tone across base metals, although copper's fundamentals remain supportive.
Tightness in copper concentrate supply further underpinned prices. Treatment and refining charges (TC/RCs) — a key indicator of concentrate availability — turned negative, reflecting severe supply constraints. On March 28, the Shanghai Metals Market index for copper TC/RCs stood at -$24.14 per ton and -2.41 cents per pound, indicating reduced margins for smelters and highlighting the scarcity of feedstock.
Elsewhere in the metals complex, tin on the Shanghai Futures Exchange gained 0.5% to 287,600 yuan, supported by fears of supply disruption following an earthquake in Myanmar, a key tin-producing region. On the LME, aluminium rose 0.4% to $2,543.5 per ton, while lead slipped 0.2% to $2,015. Zinc gained 0.5% to $2,867, tin declined 0.2% to $36,585, and nickel climbed 1.6% to $16,175 per ton.
In Chinese domestic markets, SHFE copper eased 0.3% to 80,090 yuan ($11,024) per ton. SHFE aluminium remained flat at 20,540 yuan, zinc added 0.3% to 23,590 yuan, lead rose 0.1% to 17,435 yuan, and nickel declined 0.3% to 130,080 yuan.
Overall, while geopolitical trade concerns continue to loom, the underlying supply dynamics and resilient demand indicators—particularly from China—are providing crucial support to copper and the broader base metals sector as the second quarter unfolds.