China Reopening Boosts Global Copper Prices
Copper prices climbed to their highest level in more than a week on Tuesday, supported by improved investor sentiment and stronger demand signals from China after markets reopened following the Lunar New Year holiday.
Benchmark three-month copper on the London Metal Exchange rose 1.8% to $13,100 per metric ton in official open-outcry trading, after touching $13,196 earlier in the session its highest level since February 12. The contract had slipped 0.7% on Monday but remains up 22% over the past three months, though still below its record peak of $14,527.50 reached on January 29.
LME Copper Hits One-Week High
Market participants cited improved sentiment following a ruling by the Supreme Court of the United States that struck down emergency tariffs imposed by President Donald Trump. Some investors believe the decision could benefit China by easing trade tensions, a view reinforced by gains in Chinese equity markets.
Alastair Munro, senior base metals strategist at Marex, said the tariff announcement over the weekend was “at the margins positive for the metals markets because it’s better for China.” He also noted signs of strengthening physical demand, pointing to a sharp rise in the Yangshan copper premium, which reflects appetite for imported copper into China. The premium jumped 60% on Tuesday to $53 per ton.
Nickel Jumps on Indonesia Permit Review
On the Shanghai Futures Exchange, the most-active copper contract gained 0.8% to close daytime trading at 101,510 yuan ($14,728.88) per ton. The session marked the first day of trading after China’s nine-day Lunar New Year break, adding momentum to the broader rally.
However, rising inventories tempered some optimism. Copper stocks in LME-registered warehouses increased by another 1,350 tons to 243,175 tons, the highest level since March 2025. Inventories have surged 71% so far this year, raising questions about the sustainability of the price rebound.
“What’s going to be crucial is for us to start to see those stocks begin to dissipate, maybe not this week or next week, but in the next three to four weeks,” Munro said.
Metals Rally After Tariff Ruling
Elsewhere in the metals complex, LME nickel advanced 2.9% to $17,780 per ton, its strongest level since February 12. The move came as Indonesian authorities reportedly considered revoking the environmental permit of PT QMB New Energy Materials, a nickel and cobalt joint venture led by China’s GEM, potentially tightening supply expectations.
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Other base metals also posted gains. LME aluminum rose 0.4% to $3,101 per ton, zinc increased 0.9% to $3,383, lead edged up 0.1% to $1,953, and tin climbed 2.5% to $48,890.
The broader rally underscores how developments in China—both in physical demand and policy shifts—continue to exert significant influence over global metals markets.
