LME Copper Rises, Boosted by Optimistic Demand Outlook

On Tuesday, April 1, London copper prices rose as optimistic demand prospects outweighed concerns that the US implementation of reciprocal tariffs could trigger a global trade conflict.

At 11:06 Beijing time, the three-month copper contract on the London Metal Exchange (LME) increased by 0.57% to $9,765 per mt.

The Caixin China Manufacturing Purchasing Managers' Index (PMI) for March, released on April 1, recorded 51.2, up 0.4 percentage points from February, reaching a new high since December 2024, indicating that manufacturing production and business activities continued to expand at a faster pace.

A base metal trader said, "Everyone is closely watching the tariff policy that the US will announce tomorrow. The approaching uncertainty has led to a risk-off sentiment."

Copper prices were also supported by a supply deficit of copper concentrates, which has driven the treatment and refining charges (TC/RCs) for copper concentrates into negative territory.

The decline in TC/RCs indicates that supply is tight.

Meanwhile, the tin futures price on the Shanghai Futures Exchange (SHFE) performed well, rising 0.4% to 287,290 yuan per mt, as the market worried that the earthquake in Myanmar, a tin-rich country, last Friday would lead to supply disruptions.

Other LME metals: the three-month aluminum contract rose 0.32% to $2,541 per mt; the three-month lead contract increased 0.25% to $2,017 per mt; the three-month zinc contract climbed 0.54% to $2,868 per mt; the three-month tin contract fell 0.34% to $36,520 per mt; and the three-month nickel contract surged 1.39% to $16,140 per mt.

Shanghai metals: the most-traded SHFE copper contract dropped 0.24% to 80,130 yuan per mt; SHFE aluminum rose 0.07% to 20,550 yuan per mt; SHFE zinc increased 0.36% to 23,600 yuan per mt; SHFE lead climbed 0.09% to 17,425 yuan per mt; and SHFE nickel fell 0.48% to 129,900 yuan per mt.