Base Metals Cooper, Nickel and More Surged Amid Potential US Tariff Relief

Base metals saw gains on Monday after Chinese markets reopened following the Lunar New Year holiday, with investors responding to signs that the country could face lower US tariffs.

• Copper climbed as much as 2.3% in London, nearing $13,200 a tonne.
• Aluminium and nickel also recorded notable increase.

The rally came after the US administration proposed a 15% levy on Chinese goods, following the Supreme Court’s decision to overturn former President Trump’s earlier reciprocal tariffs. The move could ease pressure on China’s metal-intensive export sector.

Mainland equities echoed the positive sentiment, with the CSI 300 Index rising in early Tuesday trading. Morgan Stanley analysts estimate that, if finalised, the new framework could reduce the average US tariff on Chinese imports from 32% to 24%.

Market Dynamics

Copper prices have remained near record highs since hitting an all-time peak in January. Volatility has been driven by changes in US trade policy, supply disruptions at mines, and expectations of stronger demand linked to the global energy transition.

High prices have also dampened physical buying in China, contributing to rising inventories monitored by exchanges. Stockpiles in the US and in London Metal Exchange (LME)-tracked warehouses have similarly increased.

As of 10:48 am in Shanghai (8:18 am IST), copper stood at $13,158.50 a tonne on the LME, up 2.3%, while aluminium rose 0.9% to $3,118.50 a tonne.

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