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Highlights
- Copper prices surge to two-week high on dollar weakness
- Industrial metals rebound after UK holiday trading break
- Global trade tensions create mixed impact on commodities
Copper prices surged to a two-week high as trading resumed on the London Metal Exchange (LME) following a two-day pause due to a UK holiday. The market responded positively to a significant drop in the US dollar, which generally boosts demand for commodities priced in the greenback.
A weaker US dollar typically makes industrial metals more affordable for buyers using other currencies. On Monday, Bloomberg’s dollar index fell to its lowest level in 15 months, creating a favorable environment for metal buyers and supporting price movements across the base metals complex.
Copper rose by more than 1% during early trading, reaching as high as $9,318 per tonne before settling slightly lower at $9,298 per tonne by 9:36am Shanghai time. The increase marks a robust recovery as trading picked up after the long weekend.
Other base metals also joined the upward momentum. Aluminum and zinc climbed over 1%, reflecting broader optimism across the sector. These movements followed a challenging start to April for metals, influenced by trade policy shifts and economic uncertainty.
Much of the turbulence stems from evolving global trade dynamics, particularly those triggered by the sweeping import tariffs introduced by the US administration. The potential slowdown in economic growth raises concerns over long-term industrial demand, but the recent dollar rout has helped offset some of those worries in the short term.
In China, the Shanghai Futures Exchange showed a mixed response. Copper futures dropped 0.5% on the day but remained approximately 1.3% higher compared to Thursday's close, suggesting some resilience in domestic investor sentiment despite global uncertainty.
The rally in copper and other metals reflects the push and pull of macroeconomic forces at play—where currency movements, geopolitical trade developments, and investor sentiment all intersect. Industrial players and market watchers continue to monitor these factors closely to assess the sustainability of this momentum.
Several companies involved in copper and base metals production and trading, such as BHP Group (ASX:BHP) and OZ Minerals (ASX:OZL), could see indirect impacts as commodity markets adjust to shifting global narratives. The interplay of monetary policy, currency valuation, and trade decisions will remain key drivers of pricing trends in the coming weeks.
