Antofagasta PLC (LSE:ANTO) led the FTSE 100 higher on Tuesday, rising 2.4% as copper prices continued their rally.
The metal has climbed 4.3% over the past week and is now up 28% since the start of the year, driven by tightening supply and improved sentiment around global demand.
The broader mining sector followed suit. Fresnillo PLC (LSE:FRES), which produces copper as a by-product of its silver operations, also gained ground alongside Glencore PLC (LSE:GLEN) and Anglo American PLC (LSE:AAL).
Optimism has been building around the possibility of a trade agreement between the United States and China, the world’s two largest economies and major consumers of industrial metals.
Investors are betting that such a deal could provide a fresh boost to commodity demand, particularly from China’s manufacturing and construction sectors, where copper is a key input.
In afternoon trading, Antofagasta shares were changing hands for 1,854.25p, up 44p.