LONDON – Copper and other base metals were on track to finish a very volatile week on the rise in London on Friday, supported by a weaker dollar, though gains were capped by the potential for trade conflict between the US and China to curb demand.
Benchmark three-month copper on the London Metal Exchange (LME) was up 2.0 percent at $9,166.50 a metric ton.
The metal used widely in power and construction is up 4.5 percent this week after hitting a multi-month low of $8,105 a ton on Monday as tariff sparring between the world’s two largest economies fuelled global recession fears.
Beijing increased its tariffs on US imports to 125 percent on Friday, hitting back against US President Donald Trump’s decision to hike duties on Chinese goods effectively to 145 percent and raising the stakes in a trade war that threatens to up-end global supply chains.
However, consumer buying and temporary technical factors helped to restore a little stability in metals.
The spread between the cash LME copper contract and benchmark three-month futures has become volatile ahead of next week’s LME contracts settlement and was last at a premium of $37 a ton, compared with a $63 discount a week ago.
The most active Comex copper contract rose by 4.6 percent to $4.537 per lb, widening the premium over the LME benchmark.
On the demand side, Chilean copper giant Codelco said on Thursday that it was seeing strong demand from China this quarter.
Supporting this, the Yangshan copper premium, which reflects demand for copper imported into China, remained at $89 a ton, its strongest since late 2023.
