Oil on track for weekly gains before US-China trade talks

Copper prices edged higher in London on Friday as the dollar weakened and supplies shrank in nearby markets, raising prices of newer copper futures compared to older ones.

Copper three-month futures at the London Metals Exchange rose 0.1% to $9443 a tone by 09:55 GMT.

US President Donald Trump said crucial trade negotiations with China will be conducted this weekend, and he expects the punitive 145% tariffs on Chinese goods to fall.

A softening of the trade dispute between the two largest economies in the world would likely boost growth, market sentiment, and copper demand, in turn underpinning prices.

Otherwise, copper inventories monitored by the Shanghai Futures Exchange fell 9.6% this week, and are down 70% since late February.

At the London Metals Exchange, the gap between the Shanghai Exchange price and three-month contract price in London closed at a $46 a ton surplus, the highest since November 2022, and compared to a deficit of $64 a ton in early April, as London inventories continue to attract inflows from abroad. 

China’s copper imports hit a record high in April as industrial production picks up pace. 

As for other metals, aluminum price rose 0.6% at the London Exchange to $2428 a ton, while zinc rose 1.1% to $2647.5, as lead rose 1.6%, while nickel rose 1.1% to $15,705. Tin rose 0.1% to $31,760.

Otherwise, the dollar index fell 0.4% as of 14:46 GMT to 100.2, with a session-high at 100.8, and a low at 100.2.

Copper July futures rose 1.3% as of 14:40 GMT in American trade to $4.66 a pound.