Copper futures climbed on strong Chinese manufacturing data and expectations of increased infrastructure spending in the United States

(LME) copper futures on the London Metal Exchange rose on Wednesday on strong manufacturing data from China, a major consumer of metals, and hopes that the US will increase infrastructure spending. However, a stronger dollar and higher yields on US Treasuries have curbed the rally in copper prices. Copper for delivery in three months rose 0.14% to $75.50 a tonne on March 31, London time. But copper delivery has fallen 3.3 per cent this month and is set to record its first monthly decline since March 2020. LME copper has hovered in its range since hitting a nine-and-a-half-year high of $9617 at the end of February and has risen 25 per cent since the start of the year.

"Today's focus is on Biden's infrastructure proposal, and the Chinese data are also quite positive, so there is some support," said a head of commodity strategy. " "but the stronger dollar is limiting the upside, and the options market suggests this is likely to continue for some time." China's manufacturing activity expanded at its fastest pace in three months in March as factories accelerated production and US President Joe Biden will unveil a $2 trillion infrastructure plan. The stronger dollar weighed on the metals market. The dollar hit an one-year high against the yen and a multi-month high against other currencies. Chile's statistics bureau reported on Wednesday that Chilean copper production fell 4.8 per cent to 430100 tons in February. Nickel prices may soon fall as supply in Indonesia is growing rapidly, officials from Aoyama Holdings Group (Tsingshan Holding Group), a nickel giant, said on Wednesday. Nickel prices have been supported by the growing demand for nickel in the electric vehicle battery industry and strong consumption in the stainless steel industry, which has been disrupted by Indonesia's ban on nickel exports in 2020.