Copper Rises on China Growth Hopes, Trade War Jitters Remain

Price Action:

• 🔴 LME Copper (CMCU3): 9,202.50/ton∗∗(+0.49,202.50/ton∗∗(+0.48,105 but still 10% below March peaks.
• 📉 SHFE Copper (SCFcv1): 75,210 yuan ($10,269)/ton (-1.1%), weighed down by tariff fears.
• Other Metals:
  • Zinc (CMZN3): $2,583.50 (-1.2%) on LME inventory surge (↑70% to 190,550 tons).
  • Aluminum (CMAL3): 2,379∗∗(+0.22,379∗∗(+0.215,680 (+0.8%).

Key Drivers:

1. China’s Q1 GDP Beat:
   • 5.3% growth (vs. 4.6% forecast) boosted sentiment, but trade war risks linger.
2. Dollar Softness:
   • Weaker USD (.DXY) made dollar-priced metals cheaper for global buyers.
3. Trade War Overhang:
   • US chip restrictions on China (Nvidia slump) rattled markets early in the session.
   • Analysts warn demand uncertainty may cap rallies until tariffs ease.

Market Sentiment:

• Short-Term: Cautious optimism as China data offsets trade fears.
• Long-Term: Copper’s outlook hinges on US-China negotiations and green demand (EVs, grids).