Copper futures climbed 1% to around $4.70 per pound on Monday, marking a third consecutive session of gains, as the U.S. dollar weakened amid renewed uncertainty over U.S.-China trade relations and broader hopes for resilient global demand.
Copper climbs higher on weaker dollar
The softer dollar made dollar-denominated commodities like copper more attractive to foreign buyers, supporting prices. Investor sentiment was cautiously optimistic after President Donald Trump confirmed he had no immediate plans to speak with Chinese President Xi Jinping, but signaled openness to reducing tariffs on Chinese goods as part of an effort to reestablish momentum in trade discussions. Last week, Beijing hinted it might be willing to resume negotiations but insisted that the U.S. must first lift all unilateral tariffs to create an environment conducive to good-faith dialogue.
In addition to developments with China, market participants are closely monitoring potential progress on U.S. trade talks with India, Japan, and South Korea—economies with significant industrial output and consumption of base metals. Any breakthroughs in those agreements could help sustain copper demand by reducing trade friction and boosting industrial confidence, particularly in Asia. Furthermore, the metals market found additional support from a stronger-than-expected U.S. jobs report for April, which showed solid employment growth and underscored the resilience of the American economy despite external headwinds. The data helped allay fears that heightened trade tensions could trigger a broader slowdown, thereby reinforcing expectations for steady industrial activity and construction—both of which are key drivers of copper consumption.
Concerns remain over disruptions in key producing regions
On the supply side, concerns remain over disruptions in key producing regions, including labor unrest and weather-related setbacks in Latin America, particularly in Chile and Peru, which together account for nearly 40% of global copper output. At the same time, longer-term bullish sentiment is being driven by structural trends such as the global energy transition, which continues to increase copper demand for electric vehicles, renewable energy infrastructure, and grid upgrades. With inventories at historically low levels on major exchanges and investment flows into industrial metals rebounding, copper prices may continue to find upward pressure in the near term—though geopolitical developments and central bank policy guidance remain critical variables for direction.
