Copper prices fluctuate as China GDP meets forecast, markets eye US data
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Copper prices on the London Metal Exchange and the Shanghai Futures Exchange saw narrow fluctuations on Tuesday, as China's GDP growth met forecasts, while traders awaited U.S. inflation data and potential monetary policy shifts.
Three-month copper on the LME was up 0.31% at $9,648.5 per metric ton, as of 0700 GMT, while the most-traded copper contract on the SHFE eased 0.26% to 78,090 yuan ($10,884.84) a ton.
China's GDP grew 5.2% during April-June, slightly lower than the 5.4% in the first quarter, with first-half 2025 GDP growth at 5.3%. Fixed asset investment increased 2.8% year-on-year, according to China's National Bureau of Statistics.
"Metals market will not be reacting much so long as the China's GDP growth for the first half is above 5%, and for the rest of 2025 and in the longer term, it is more about how Beijing will be dealing with the overcapacity in many industrial sectors and cut-throat competition," a Shanghai-based metals analyst from a futures company said.
The dollar hovered near a three-week high against major peers, as traders awaited U.S. inflation data for clues on monetary policy and the potential departure of Federal Reserve Chair Jerome Powell amid continued criticism from U.S. President Donald Trump.
SHFE tin fell 1.12% to 263,240 yuan a ton, mainly in response to the market speculation on the re-issuance of tin mining licenses in Wa State, Myanmar, on Tuesday. Wa State suspended all work at the local mines in August 2023 to protect resources.
"SHFE tin price has softened in reaction, on the expectation of supply increase in the coming months," a Shanghai-based tin trader said.
LME lead fell 0.72% to $1,988.5 a ton, zinc ticked down 0.6% to $2,713.5, tin eased 0.55% to $33,350, and nickel went down 0.36% to $15,010, while aluminium traded flat at $2,592.5.
SHFE nickel fell 1.15% to 119,380 yuan per ton, lead eased 0.76% at 16,930 yuan, and zinc slipped 0.54% to 22,085 yuan, while aluminium was flat at 20,430 yuan.
