Copper prices ticked up on Friday and were headed for weekly gains in the wake of a subdued U.S dollar, while traders looked for further signs of stimulus measures from top consumer China.
Three-month copper on the London Metal Exchange (LME) was up 0.5% at $9,117 per metric ton as of 0307 GMT and added 1.2% for the week.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) firmed 0.2% to 74,630 yuan ($10,283.44) a ton and gained 1.2% for the week.
The US dollar rally continued to cool on Friday, making metals more affordable for other currency holders.
Attention is on China’s Central Economic Work Conference meeting this month. So far, investors have been disappointed about the lack of aggressive fiscal stimulus measures to boost the country’s sluggish economy.
“Prices have been range-bound as there haven’t been any fresh catalysts. The market wants to see massive fiscal stimulus measures. But, I think Chinese policymakers will hold back till they gain more clarity on (Donald) Trump’s strategy,” said Kelvin Wong, senior market analyst at OANDA. US President-elect Trump has pledged to impose “an additional 10% tariff” on imports from China.
“Flagging demand in China caused by trade tariffs could see a shift in Chinese stimulus to drive domestic demand, or there could be a stronger recovery in developed markets,” Macquarie analysts said.
Copper lower on weak risk appetite
On Friday, LME aluminium lost 0.2% to $2,633 a ton, tin dropped 0.5% to $29,010, lead was unchanged at $2,099.5, while zinc rose 0.1% to $3,122.5 and nickel advanced 0.3% to $16,020.
SHFE aluminium fell 0.7% to 20,440 yuan a ton, nickel shed 0.5% to 125,860 yuan, tin was flat at 243,850 yuan, while zinc increased 1% to 25,660 yuan and lead firmed 0.9% to 17,765 yuan.
Source: Brecorder
