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Copper scales five-month peak on soft dollar, China deal

AnyFans 2025-09-19

By Reuters

LONDON: Copper prices extended gains to their strongest in more than five months on Monday after downbeat data from China was overshadowed by a drop in the dollar, a deal between the US and China on TikTok and hopes for more economic stimulus.

Benchmark three-month copper on the London Metal Exchange climbed 0.9percent to USD10,155 a ton by 1415 GMT, its highest since March 26. Officials said the US and top metals consumer China have reached a framework agreement to switch short-video app TikTok to US-controlled ownership, giving investors hope that a trade deal between the two major powers is also close.

“There’s been a focus on the trade talks because part of the economic weakness in China has been driven by the tariffs,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The dollar index slipped ahead of a week of central bank decisions, including an expected interest rate cut by the US Federal Reserve. A soft dollar makes commodities priced in the US currency cheaper for buyers using other currencies.

The bullish elements eclipsed data that showed growth in China’s factory output and retail sales in August slumped to their weakest since last year.

“This week the theme is stimulus, not only whether we can get some more in China following that data dump, which wasn’t exactly pretty, but also in the US with a rate cut expected,” Hansen said.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading up 0.4 percent at 81,000 yuan (USD11,371.77) a ton.

LME copper prices have gained 15 percent this year but have struggled to make much headway above the USD10,000 level.

Hansen said he was watching a double-top technical formation in LME copper, based on highs of USD10,164.50 in March this year and USD10,158 in September last year, which has been capping gains.

LME aluminium rose 0.4percent to USD2,699.50 a ton after touching its strongest since July 29 at USD2,705.

Nickel gained 0.7 percent to USD15,500 and zinc added 0.5 percent to USD2,972 while lead lost 0.7 percent to USD2,004 and tin slipped 0.5 percent to USD34,800.