US-China Trade Talks Support London Copper Amid Market Expectations

London copper prices remained relatively stable as investors await details of US-China trade talks. The market had seen a sharp sell-off in recent days, but hopes of progress in trade negotiations have lifted copper prices. The metal's performance is closely tied to the global economy, and any signs of improvement in trade relations could boost demand for copper.

London copper prices remained relatively stable on Tuesday, June 11, 2025, as investors awaited details of ongoing U.S.-China trade talks. The market had experienced a sharp sell-off in recent days, but optimism surrounding the trade negotiations has lifted copper prices. The metal's performance is closely tied to the global economy, and any signs of progress in trade relations could boost demand for copper.

The three-month copper contract on the London Metal Exchange (LME) HG1! traded at $9,761.5 per metric ton by 0101 GMT, while the most-traded copper contract on the Shanghai Futures Exchange (SHFE) HG1! gained 0.6% to 79,160 yuan a ton ($11,024.76) [1]. The U.S.-China trade talks, which are set to run into a second day, aim to ease a bitter dispute that has widened from tariffs to rare earth curbs, threatening a global supply chain shock and economic slowdown [1].

The Trump administration has shown willingness to remove measures targeting ship design software, jet engine parts, chemicals, and nuclear materials, sparking optimism across markets [1]. Copper stocks (MCUSTX-TOTAL) in LME-registered warehouses fell 10,000 tons on Monday to 122,400 tons, suggesting that shipments to the U.S. have continued despite potential threats of U.S. tariffs on copper imports [1].

Among other LME metals, aluminium ALI1! eased 0.2% to $2,473.5 a metric ton, zinc ZNC1! slipped 0.1% to $2,647, tin FTIN1! fell 0.3% to $32,605, and nickel NICKEL1! ceded 0.4% to $15,355 [1]. Zinc ZNC1! continued to soften, losing 1.2% to 21,870 yuan, nickel NICKEL1! fell 0.9% to 121,640 yuan a ton, while lead LEAD1! gained 0.8% to 16,860 yuan and tin FTIN1! gained 0.3% to 263,550 yuan among other SHFE metals [1].

Copper inventories in China have been rising, though moderately, not adding much pressure on prices, according to Shanghai-based commodity research house SHMET [2]. Total copper stocks (CU-STX-SGH) in SHFE-registered warehouses gained 1,613 tons on the week to 107,404 tons in the week ended June 6 [2].

The Yangshan copper premium (SMM-CUYP-CN), a gauge of China's appetite to import copper, fell to $41 a ton last Friday, a three-month low, suggesting a softening in demand [2]. However, the premium peaked at $103 in early May, the highest since mid-December 2023 [2].

The U.S. dollar held steady against all major currencies on Monday, as exuberance over an upbeat U.S. employment report gave way to caution ahead of the trade talks between the world's largest economies [4]. The three-month copper contract on the LME HG1! traded up $2 at $9,695 per metric ton by 0108 GMT, while the most-traded copper contract on the SHFE HG1! ticked down 0.2% to 78,630 yuan a ton ($10,939.67) [4].

The 10-year Treasury yield was down almost 4 basis points at 4.446% as of 7:27 a.m. ET on Tuesday, reflecting the market's cautious optimism about the trade talks [6]. The 2-year yield slipped around one basis point to 3.993%, and the 30-year yield was lower by 3 basis points to 4.921% [6].

Overall, London copper prices held steady amid the ongoing U.S.-China trade talks, with investors closely monitoring the progress for any potential impact on the global economy and copper demand.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3SD042:0-london-copper-prices-ease-slightly-us-china-talks-in-focus/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SC05E:0-london-copper-inches-up-ahead-of-us-china-trade-talks/
[4] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3SC02X:0-london-copper-little-changed-ahead-of-us-china-trade-talks/
[6] https://www.cnbc.com/2025/06/10/treasury-yields-us-china-trade-optimism.html