NEW YORK, Feb. 24 (Reuters) - Copper futures rose on Tuesday on the Chicago Mercantile Exchange (COMEX) as Chinese futures markets reopened after the Lunar New Year holiday, with traders optimistic about a possible reduction in U.S. tariffs.

At the close, COMEX copper futures rose between 15.0 and 15.10 cents, with the most actively traded May 2026 contract settling at $5.9915 per pound, up 15.05 cents or 2.58% from the previous trading day, marking the highest closing price since February 11.

The benchmark copper contract traded in a range of $5.846 to $5.9975. Copper prices hit a record high of $6.583 on January 29. 

Trump announced a proposed 15% tariff. Overall, the tariff burden on China has eased, which should help boost the outlook for China's metal-intensive exports.

Morgan Stanley estimates that if the new trade framework is ultimately confirmed, the average U.S. tariff on Chinese goods will drop from 32% to 24%.

Rising metal prices also boosted Chinese stocks, with the CSI 300 index rising on Tuesday.

Chinese analysts say the news from the U.S. is positive for the metals market. Demand from manufacturers is expected to recover.

Since hitting a record high in January, copper prices have been consolidating at high levels, with fluctuations influenced by factors such as frequent changes in US policy, disruptions to mine production, and expectations of increased consumption due to the energy transition.

Rising copper prices have dampened spot demand in China, causing exchange-registered inventories to reach their highest level since 2024. Total copper inventories across the Shanghai Futures Exchange, the London Metal Exchange (LME), and COMEX have exceeded one million tons, a more than 20-year high.

COMEX copper futures (near-term contracts) are up 0.44% so far this month and 5.20% year-to-date, closing 32.03% higher than a year ago on Tuesday. COMEX copper futures are projected to rise 41.24% by 2025, the largest annual gain since 2009 and the third consecutive year of increases, as the market bets that miners' production will struggle to keep pace with demand growth. In the medium to long term, green transitions, electrification, and the artificial intelligence industry are expected to boost additional demand for this metal, which has wide applications in the power and construction sectors, while copper mines face disruptions such as underinvestment and production interruptions.

Tuesday (January 24th) was the first trading day after the Spring Festival holiday. The March copper futures contract on the Shanghai Futures Exchange closed up 730 RMB/ton at 101,510 RMB/ton. The March bonded copper futures contract on the Shanghai International Energy Exchange (INE) closed up 580 RMB/ton at 90,050 RMB/ton.

On Tuesday, the trading volume of the COMEX benchmark copper contract was 57,838 lots, compared to 34,658 lots in the previous trading day; the open interest was 117,820 lots, compared to 115,416 lots in the previous trading day.

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