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REFILE-METALS-Copper rises on US-China dialogue hopes

ReutersMay 6, 2025 3:27 AM

- Copper prices edged higher on Tuesday as signs of U.S.-China trade talks boosted sentiment, though lingering concerns about the broader economic impact from trade disputes limited gains.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.7% to $9,431 a metric ton, as of 0130 GMT.

U.S. Treasury Secretary Scott Bessent on Monday defended Trump's tariffs, emphasizing that his broader agenda including tax cuts would eventually lead to long-term economic growth.

Beijing is "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs, China's Commerce Ministry said on Friday.

The Commerce Ministry said the United States has approached China to seek talks over Trump's tariffs and Beijing's door was open for discussions, signalling a potential de-escalation in the trade war.

"It doesn't seem to be a smooth journey for trade talks and investors are growing increasingly worried about potential negative effects on worldwide economic expansion and subsequent metal demand," a trader said.

The first quarter saw the U.S. economy shrink for the first time in three years amid a flood of imports to beat Trump's tariffs, and the International Monetary Fund has forecast that U.S. GDP will grow only 1.8% in 2025.

In other London metals, aluminium CMAL3 rose 0.6% to $2,445 a ton, zinc CMZN3 rose 1.4% to $2,645, lead CMPB3 added 0.6% to $1,948, tin CMSN3 was up 3.6% to $31,795 and nickel CMNI3 rose 1.2% to $15,665 a ton.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) was flat at 77,570 yuan ($10,669) per ton.

SHFE aluminium SAFcv1 lost 0.7% to 19,850 yuan a ton, zinc SZNcv1 lost 0.5% to 22,385 yuan, lead SPBcv1 fell 0.5% to 16,765 yuan, nickel SNIcv1 rose 0.4% to 124,500 yuan and tin SSNcv1 was up 0.7% to 260,000 yuan.

($1 = 7.2706 Chinese yuan)

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