Copper prices have surged to their highest levels in five months following China’s announcement of a robust plan to stimulate domestic consumption. The world’s largest consumer of the metal is taking decisive action to counter the effects of U.S. tariffs imposed by President Donald Trump, propelling market optimism and driving industrial metal prices higher.
Over the weekend, China introduced a special initiative to accelerate consumer demand, providing a crucial lift to economic activity at the start of the year. The impact was immediate, with retail sales increasing by 4% in the first two months, surpassing forecasts. This uptick has helped ease concerns about the trade restrictions imposed by the U.S. administration, which had threatened Chinese exporters.
Industrial metal prices have rallied by approximately 12% this year as Trump’s tariffs exacerbate existing supply challenges caused by disruptions at key mining sites. However, concerns persist over China’s property sector, a critical driver of copper demand. Despite efforts to stabilise the market, new home prices fell sharply last month, underscoring the ongoing struggles within the real estate sector.
Copper prices rose 0.2% to $9,804 per tonne on the London Metal Exchange, following a previous peak of $9,850 on Friday, the highest since October. In Shanghai, prices saw an early increase of 0.5% before stabilising. Other industrial metals also saw movements, with aluminium holding steady at $2,682.50 per tonne, while nickel climbed 0.7%.
China’s aluminium sector displayed resilience, with production increasing by 2.6% to a record 7.32 million tonnes in the first two months of the year. This equates to a daily output of 124,068 tonnes, supported by rising profit margins as product prices continue to strengthen. The robust performance of smelters highlights the sector’s ability to navigate market challenges and capitalise on higher revenues.
China’s latest intervention is a clear signal of its commitment to sustaining economic momentum. While headwinds remain in the property market, the broader push to stimulate consumption is expected to support industrial metal demand, keeping copper and other key commodities on an upward trajectory.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
