Copper prices rose on Tuesday, buoyed by expectations of fresh stimulus measures from China, a key consumer of the industrial metal. The anticipation of increased demand from China is fueling positive sentiment in the market.

Benchmark copper on the London Metal Exchange (LME) gained ground during morning trading. The price increase reflects investor optimism regarding China’s economic outlook and its potential impact on copper consumption.

Analysts suggest that any significant stimulus package from Beijing would likely involve infrastructure spending, which would, in turn, boost demand for copper in construction and manufacturing sectors.

However, some analysts caution that the price gains may be limited if concrete details of the stimulus measures are not forthcoming. Market participants are closely monitoring economic data and policy announcements from China for further clues.

Other factors influencing copper prices include:

• Global economic growth prospects
• Supply disruptions from major copper-producing regions
• Inventory levels at LME-registered warehouses

Traders are also keeping an eye on the strength of the U.S. dollar, as a weaker dollar typically makes dollar-denominated commodities like copper more attractive to buyers holding other currencies.