Copper buoyed to 5-month peak by Chinese stimulus measures, weaker dollar

Copper prices hit their strongest in five months on Monday, supported by the latest economic stimulus plan from top metals consumer China and a weaker dollar, with traders awaiting more clarity on U.S. tariff risks and their effect on global growth.

Benchmark three-month copper HG1! on the London Metal Exchange added 0.9% to $9,870 a metric ton by 1710 GMT, its highest since October 8.

U.S. Comex copper futures (HGc3) gained 1.4% to $4.96 a lb.

China released fresh data on Monday after the previous day's announcement of a "special action plan" to boost domestic consumption.

"The latest data showed Chinese consumption, investment and industrial production exceeded estimates for January-February," said ING commodities analyst Ewa Manthey.

"Still, the property sector, a pillar for metals demand, is yet to bottom out. China's new home prices and existing home prices continued to slide month on month."

In the broader picture for growth-dependent metals, U.S. import tariffs and escalating global trade wars remained the main longer-term downside risk for the sector.

U.S. President Donald Trump said he has no intention of creating exemptions on steel and aluminium tariffs and that reciprocal and sectoral tariffs will be imposed on April 2.

Trump previously ordered an investigation into possible new tariffs on copper, inflating the premium of Comex copper over the LME contract, which was last at $1,067 a ton.

The dollar hovered near a five-month low on Monday. U.S. retail sales rebounded marginally in February as consumers pulled back on discretionary spending, reinforcing the growing uncertainty over the economy.

The focus is now on Wednesday's U.S. Federal Reserve meeting, at which the central bank is expected to hold interest rates steady.

Meanwhile, LME aluminium ALI1! was up 0.4% at $2,692 a ton.

Stocks in LME-registered warehouses fell by 4,525 tons to 497,275 tons, the lowest since May, daily LME data showed. China's aluminium production rose 2.6% to 7.32 million tons in January-February.

In other metals, zinc ZNC1! slipped 0.4% to $2,961 a ton, tin FTIN1! fell 0.8% to $35,015 and nickel NICKEL1! shed 0.4% to $16,400. Lead LEAD1! gained 0.8% to $2,085.