SINGAPORE — Copper prices on the London Metal Exchange climbed on Monday, supported by a weaker dollar, although renewed US-China trade tensions raised supply chain concerns and limited further upside in metal prices.
Benchmark three-month copper on the London Metal Exchange (LME) was up 0.7 percent at $9,561.5 per metric ton.
China’s commodity markets were closed on Monday for the Dragon Boat holiday.
The dollar edged lower, paring gains seen last week, as markets assessed the potential growth and inflation risks from US President Donald Trump’s latest tariff policy.
Trade tensions intensified after Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50 percent from 25 percent, ratcheting up pressure on global steel producers.
China’s manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States.
The official purchasing managers’ index improved slightly to 49.5 in May from 49.0 in April but stayed below the 50-mark separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll.
