BENGALURU- Most base metals in Shanghai gained on Tuesday on hopes of more stimulus from China, the world’s biggest metals consumer, and some improvement in the country’s manufacturing activities.
The most-active copper contract on the Shanghai Futures Exchange added 0.1 percent to 77,090 yuan ($10,590.45) a metric ton.
The base metal sector rose amid signs of improved factory activity in China ahead of the National People’s Congress (NPC) gathering on March 5, with expectations for further stimulus to support the economy, said Daniel Hynes, a senior commodity strategist at ANZ bank.
China’s manufacturing activity expanded at the fastest pace in three months in February and the reading should reassure officials that last year’s stimulus measures are helping shore up a patchy recovery in the world’s second-largest economy.
Meanwhile, Trump said on Monday that 25 percent tariffs on goods from Mexico and Canada will take effect on Tuesday, along with a doubling of China levies to 20 percent, stoking fears of a trade war in North America and sending financial markets reeling.
JP Morgan expects the global deficit in refined copper to grow to 160,000 metric tons in 2026 and continues to forecast copper prices averaging around $11,000 per metric ton next year.
