FX.co ★ Copper Holds Steady After US-China Trade Talks

Copper futures remained steady at approximately $4.90 per pound on Wednesday, as the market digested the results of trade discussions between the United States and China in London. After two days of talks, both nations agreed on a framework to implement the Geneva consensus and progress on commitments made during a recent call between Presidents Trump and Xi. As part of the agreement, China is anticipated to lift restrictions on rare earth exports, while the United States might ease restrictions on the sale of advanced technology to China—actions that could alleviate geopolitical tensions and stabilize the demand outlook for industrial metals. On the supply front, inventories of copper on the London Metal Exchange (LME) are on the decline, with considerable volumes being shipped to the United States in anticipation of potential import tariffs. However, there are emerging signs of weakness in China's copper market, as local smelters are increasingly looking to export surplus supplies due to weakening domestic demand.