0904 GMT - Base metal prices rise, with LME three-month copper up 1.5% at $9,388.0 a metric ton and LME three-month aluminum up 1% at $2,432.50 a ton. Physical signs including premiums, timespreads and inventories outside the U.S. are pointing to copper market tightness as the delayed effect of diverting metal to the U.S. ahead of tariffs filters through, Morgan Stanley analysts say in a note. This is keeping prices well supported, though downside demand risks are looming in the second half of the year, MS says. This reflects the effect of U.S. tariffs deteriorating the global economic backdrop, with Chinese manufacturing figures for April already showing slumping output, analysts write. A more benign tariff outcome or more Chinese fiscal stimulus may provide some offset to pressure on copper prices, MS adds. (joseph.hoppe@wsj.com)

(END) Dow Jones Newswires

May 02, 2025 05:04 ET (09:04 GMT)

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