Copper prices hit three-week high, as Kwacha extends losing streak, weakening in 12th consecutive session

Copper prices climbed to a three-week high on the London Metal Exchange (LME) on Wednesday, briefly reaching US$9,481.50 per metric tonnes before settling 0.1 percent higher at US$9,379.00.

The rally was largely driven by easing global trade tensions. Investor sentiment improved after U.S. President Donald Trump and Treasury Secretary Scott Bessent hinted at a potential de-escalation in the ongoing U.S.-China trade dispute, including possible tariff reductions.

Trump also softened his tone toward Federal Reserve Chair Jerome Powell, reportedly easing threats to remove him from office, according to an analysis by Access Bank.

Despite the gains, some market participants warned the rally was sentiment-driven and not underpinned by strong fundamentals.

“The market remains largely responsive to U.S. rhetoric,” a copper trader noted.

Analysts cited a global copper surplus reported by the International Copper Study Group and an 8.6 percent year-on-year rise in China’s refined copper production in March as likely to weigh on prices over the medium term.

Meanwhile, mixed manufacturing data added to demand uncertainty, with the eurozone reporting contracting activity while U.S. data showed firmer output.

In currency markets, Zambia’s kwacha extended its losing streak, weakening for a twelfth consecutive session. By Wednesday, the local unit had fallen past 28.5800 to the U.S. dollar.

Analysts warned that without significant foreign exchange inflows or improved macroeconomic conditions, the kwacha remains vulnerable to further depreciation.

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