Copper Prices Rise on China Optimism Over Potential U.S. Tariff Cuts
Base metal prices moved higher as Chinese markets reopened following the Lunar New Year holiday, with investor sentiment improving on expectations that the United States may reduce tariffs on Chinese goods.
Copper Climbs Toward Key Price Levels
Copper prices surged by 2.3% in London trading, approaching the $13,200 per ton mark, while aluminum also posted gains. The rally reflects growing optimism that a potential easing of U.S. tariffs could support China’s export-driven manufacturing sector, which is heavily reliant on industrial metals such as copper and aluminum.
The U.S. administration has reportedly proposed a 15% tariff framework after a Supreme Court ruling challenged the reciprocal tariffs introduced under former President Donald Trump. If implemented, the revised trade structure could significantly improve trade conditions for Chinese goods in global markets.
Stronger Chinese Markets Support Metal Demand
The gains in base metals aligned with positive momentum in China’s domestic equities, as the benchmark CSI 300 Index rose during Tuesday’s trading session. A more favorable trade outlook could boost demand for raw materials used in infrastructure, manufacturing, and electronics production.
According to estimates from Morgan Stanley, the average U.S. tariff rate on Chinese imports could decline from 32% to 24% under the proposed trade framework.
Rising Copper Inventories Signal Demand Concerns
Despite recent price increases, elevated copper prices have weighed on physical demand in China. As a result, inventories registered across global exchanges have climbed to their highest levels since 2024.
Copper stockpiles have also increased in the United States and in warehouses monitored by the London Metal Exchange (LME), reflecting softer short-term consumption trends.
As of 12:01 PM in Shanghai, copper traded 1.9% higher at $13,116 per ton on the LME, while aluminum rose 0.8% to $3,113 per ton. Nickel prices also moved upward.
Outlook for Base Metal Markets
Market participants are now watching closely for developments in U.S.–China trade policy, as any tariff adjustments could significantly influence global metal demand, pricing trends, and supply chain dynamics in the months ahead.
