US President Donald Trump said that negotiations will resume later this month after a recent break.
Prices for base metals, widely used in the industrial and manufacturing sectors, have been affected by trade disputes between the two largest economies in the world, as investors feared that weaker global growth would damage the demand for metals.
Trump said Tuesday that he was called by Chinese President Xi Jinping, adding that trade negotiations would resume before his meeting with Xi at the G20 summit in Japan. China also confirmed the meeting of the two leaders.
“The phone call last night raised the market. Risk appetite can be higher, which is good for risky assets such as commodities and stocks, ”said a Chinese analyst.
The best-selling copper contract on the Shanghai Futures Exchange rose 1.6% to a weekly high of 47,040 yuan ($ 6,811.96) per ton, while lead reached a maximum since May 27 and amounted to 16,340 yuan for a ton.
Later, both contracts were weakened, as most analysts do not expect a decisive breakthrough in negotiations, while investors were cautious while waiting for a political decision by the US Federal Reserve later that day, but expected the Fed to follow the example of the European Central Bank and open the door. to future rate cuts.
Shanghai copper has risen in price by 1.2%, and leadership has grown by 0.7%. Aluminum grew by 0.5%, nickel grew by 1%, zinc was almost flat, and tin went up by 0.1%.
Metal prices: Three-month contracts for copper on the London Metal Exchange to 0723 GMT fell 0.1%, reaching a three-week high, while most other metals fell. Aluminum increased by 0.1%, zinc decreased by 0.6%, and nickel decreased by 0.5%.
CODELCO: Chilean-based mining company Codelco sweetened its contract offer to workers on Tuesday in an attempt to defuse growing tensions after the miners on strike at their giant copper mine, Chuquicamata, were involved in clashes with police earlier that day.
Aluminum: The Chinese company Baoshan Iron and Steel Co Ltd, the country's largest steel producer on the list, will begin test production on an aluminum project in Henan Province in mid-2020, according to an industrial zone in which the plant is located.
China's central bank said it would sell RMB-denominated promissory notes in Hong Kong for June 26 in the amount of 30 billion yuan, which is expected to drain liquidity and support the currency ahead of the G20 summit.
