Copper prices strengthened on Monday as traders grew optimistic about potential increases in demand following China’s announcement of a broad package of economic policies aimed at stimulating domestic consumption. China is the world’s largest buyer of copper, and expectations that these measures will support economic activity have lifted sentiment in global metals markets.
On the Shanghai Futures Exchange, the most-traded copper contract climbed sharply, rising nearly 3 per cent to about 103,200 yuan (roughly $14,793) per metric ton in early trading. The metal had earlier in the week touched a fresh high as traders priced in stronger demand prospects. Meanwhile on the London Metal Exchange (LME), benchmark three-month copper futures advanced more than 1 per cent, remaining close to record levels seen earlier this month.
China’s cabinet, led by Premier Li Qiang, recently convened to approve a set of fiscal and financial policy measures designed to kick-start economic growth in 2026 by incentivising household spending and supporting services sectors. The package includes steps to expand access to consumer credit, offer subsidies for durable goods purchases, and encourage private investment, all aimed at bolstering domestic demand. These actions are part of Beijing’s broader effort to move towards a more consumption-driven economy after subdued activity in parts of late 2025.
Base metals in general were supported by a softer U.S. dollar, making dollar-priced commodities more attractive to buyers using other currencies. Alongside copper, other industrial metals such as aluminium, lead and zinc also posted gains on Monday, while nickel and tin climbed to multi-session highs.
Supply side factors also helped underpin the market. Production disruptions and slower output from some major mines have tightened near-term supplies, further supporting price gains. Analysts note that, with global demand expected to grow on infrastructure investment and green energy transitions, copper remains a bellwether for industrial activity.
Overall, the mix of policy stimulus in China and favourable currency dynamics boosted metals markets at the start of the trading week, reflecting hopes that renewed Chinese domestic consumption will help sustain broader economic momentum and underpin demand for key industrial commodities.
