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METALS-LME copper rises on weaker dollar and strong China data
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METALS-LME copper rises on weaker dollar and strong China data
Mar 2, 2025 9:34 PM

(Updates with details and mid-session trading)

March 3(Reuters) - London copper rose on Monday,

supported by a weaker dollar and strong economic data from top

metals consumer China.

Three-month copper on the London Metal Exchange (LME)

gained 0.5% to $9,402.5 a metric ton by 0435 GMT.

The dollar index eased 0.4% from a two-week high hit

in the previous session.

A weaker dollar makes greenback-priced commodities cheaper

for buyers holding other currencies.

China's manufacturing activity expanded at the fastest pace

in three months in February as new orders and higher purchase

volumes led to a solid rise in production, an official factory

survey showed on Saturday.

China's economic health is crucial for base metals demand

because the country is the world's largest consumer and relies

heavily on these metals for its vast manufacturing sector.

U.S. President Donald Trump sowed confusion last week when

he mentioned a possible April 2 deadline in connection with

tariffs on Canada and Mexico, but later reaffirmed the Tuesday

deadline.

He said he would add another 10% tariff on Chinese goods on

Tuesday, effectively doubling 10% duties imposed on February 4.

"I think the markets are responding to further rhetoric

about U.S. tariffs on base metals and the hope that China's NPC

might yield further economic stimulus," said Kyle Rodda, senior

financial markets analyst at Capital.com.

China's National People's Congress (NPC), scheduled to meet

on March 5, is expected to unveil more stimulus, given the

looming tariff war and concerns about slow demand.

LME aluminium was up 0.5% at $2,619 a ton, zinc

gained 1.5% to $2,834, nickel rose 1.7% to

$15,700, tin firmed 0.5% to $31,455 and lead

rose 0.2% to $1,996.

SHFE aluminium rose 0.2% to 20,695 yuan

($2,840.14)a ton, SHFE copper firmed 0.2% to 77,170

yuan, zinc climbed 1.1% to 23,755 yuan, nickel

eased 0.1% to 126,980 yuan, lead gained 0.6% to 17,265

yuan and tin rose 0.3% to 255,900 yuan.

($1 = 7.2866 Chinese yuan)

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