SHANGHAI: Copper prices on the London Metals Exchange (LME) held steady at a five-month high on Tuesday, driven by China’s stimulus plan and a weak US dollar.
Benchmark three-month copper on the LME steadied at a five-month high and was unchanged at $9,864 a metric ton, as of 0310 GMT.
The US dollar wallowed near a five-month trough, as investors grappled with the potential economic impact of growing global trade tensions.
A softer dollar makes greenback-priced commodities more affordable for buyers using other currencies.
“China vowed to revive consumption in the world’s largest copper consuming market. The government unveiled a special action plan, containing 30 measures aimed at boosting spending by increasing people’s incomes,” ANZ Research said in a note.
China’s State Council unveiled on Sunday a “special action plan” to boost domestic consumption, featuring measures including increasing residents’ income and establishing a childcare subsidy scheme.
Copper rallies to one-month peak on signs of improving demand
Meanwhile, the draft EU plan reveals the European Commission’s consideration of potential import restrictions on aluminium, prompted by apprehensions that the metals tariffs imposed by the Donald Trump administration could trigger a surge of aluminium redirected towards Europe.
LME aluminium was flat at $2,687 a ton, lead slid 0.1% to $2,080, zinc lost 0.2% to $2,952, tin fell 0.5% to $35,030 and nickel was down 0.8% to $16,300.
SHFE copper climbed 0.4% to 80,430 yuan ($11,120.17)a metric ton, SHFE aluminium was down 0.1% at 20,890 yuan a ton, zinc slid 0.9% to 23,960 yuan, lead lost 0.9% to 17,565 yuan, tin lost 0.6% to 281,500 yuan and nickel lost 2.2% to 130,350 yuan.
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