Copper prices held steady on Monday, reversing early weekly losses as zinc and other base metals followed suit, with traders attributing the rebound to subdued activity during China’s Labor Day holiday. The metal sector saw limited volatility, with spot prices for copper edging up 0.3% to $8,950 per metric ton, per Bloomberg Markets data. Analysts noted that reduced trading volumes and delayed supply chain logistics during the holiday likely contributed to the market’s cautious optimism.

The base metals sector, which includes nickel, lead, and aluminum, mirrored copper’s resilience, with zinc prices rising 0.7% to $2,680 per ton. Market participants highlighted that the holiday-driven pause in Chinese trading—where 70% of global copper demand originates—created a temporary lull in spot transactions. This pause allowed inventories to stabilize, easing concerns over short-term oversupply.

While the rally was modest, it underscored the market’s sensitivity to geopolitical and logistical disruptions. Analysts warned that prolonged holiday effects could delay price corrections for industrial metals, potentially benefiting mining firms with strong Q2 production forecasts. However, they cautioned that broader economic uncertainty in China—such as property sector weakness—remains a wildcard for sustained gains.

Traders emphasized that the metal market’s current stability offers a brief reprieve for manufacturers reliant on these materials, though risks persist. As one trader put it, “The Labor Day effect is a double-edged sword: it eases immediate pressure but delays critical price discovery.” The base metals complex will likely remain volatile as global demand signals emerge post-holiday.