Copper prices edge higher amid rumours of US-China potential talks over trade tariffs

Copper prices edged higher on Thursday, marking modest weekly gains, as prospects of potential tariff talks between the United States and top consumer China eased investor concerns over global trade tensions.

On the London Metal Exchange (LME), copper prices rose 1.6 percent to US$9, 351 per tonne after China’s Ministry of Commerce signalled it was reviewing proposals for trade discussions with Washington.

This development raised hopes of a potential reduction in tariffs between the world’s two largest economies.
According to a market commentary issued by Absa Bank Zambia, three-month copper on the LME climbed two percent to settle at US$9, 389 per metric tonne, reflecting a 0.1 percent gain over the week.

In a similar market update, Access Group noted that the United States had approached China seeking discussions over President Donald Trump’s 145 percent tariffs. China’s Commerce Ministry confirmed it was open to negotiations, signalling a possible easing of trade hostilities.

“This followed a second consecutive day of gains, in line with broader risk asset movements,” the Access commentary stated, adding “US tariffs, including steep duties on Chinese imports imposed by President Trump, have weighed on base metals by threatening global economic growth and commodity demand, with Beijing thus far resisting direct leader-to-leader talks.”

Other base metals also recorded gains, with tin rising 1.7 percent, though copper remained relatively flat for the week overall.

Meanwhile, the Kwacha strengthened in subdued trading conditions on Thursday, attributed to the Labour Day public holiday. Bloomberg data showed the local currency appreciating by 0.39 percent against the US dollar, closing just below the K27.9500 mark.

The Kwacha maintained a firm position against the greenback, as foreign exchange demand from merchandisers was evenly matched by supply from market participants.
The currency pair was quoted at K27.8000/27.8500 per dollar (bid/offer) on the interbank market, where it traded for most of the session.

Looking ahead, the Kwacha’s performance against major currencies is expected to remain influenced by prevailing market forces.

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