Industrial metals advanced after Federal Reserve Chair Jerome Powell indicated that US interest rates could be lowered as early as next month, Bloomberg reported.

Powell, speaking at the Jackson Hole symposium, suggested the central bank may ease borrowing costs before significant improvements in economic data are seen. Traders responded by increasing bets on a 25-basis-point cut in September. A weaker dollar, often the result of looser policy, typically supports commodities by making them more affordable in other currencies.

Copper on the Shanghai Futures Exchange gained 0.6 per cent to 79,210 yuan a ton, while tin rose 1.2 per cent in mid-morning trade. Other metals on the bourse also strengthened. Iron ore futures in Singapore climbed 1.7 per cent to $102.25 a ton, with Dalian and Shanghai steel contracts moving higher. The London Metal Exchange was closed for a UK holiday.

Still, the broader outlook for metals remains clouded. Prices have been held back this year by concerns over weakening demand in China, the world’s largest consumer, as well as uncertainty surrounding US trade policy under President Donald Trump.