FX.co ★ Copper Rebounds as US-China Tensions Ease

Copper prices surged nearly 4% on Monday, climbing to over $5 per pound, as the market rebounded from significant losses registered on Friday. This recovery came after US President Donald Trump, through a post on Truth Social, indicated a willingness to improve trade relations with China, suggesting a potential meeting with Chinese President Xi Jinping later in the month. The previous steep fall of over 4% in copper prices on Friday was triggered by Trump's threat to impose a 100% tariff on Chinese imports beginning November 1, a reaction to China's new export restrictions on rare earth elements and related technologies. This had heightened concerns about an intensifying trade conflict that could hinder global economic growth and decrease demand for metals. Concurrently, supply constraints persisted as disruptions in mining operations in Chile and Indonesia continued to affect production. Specifically, Chile’s state-owned Codelco reported its lowest monthly production in over two decades in August, and output at Indonesia’s Grasberg mine remained impacted due to a fatal accident in the preceding month.