LONDON: Copper prices in London eased on Tuesday, reversing part of Monday’s 1.2% climb, under pressure from a slowdown in China’s export growth and a stronger dollar, while the market awaits more clues on China’s 2025 key targets.
Three-month copper on the London Metal Exchange (LME) was down 0.4% at $9,198 per metric ton by 1056 GMT. The contract closed at its highest in nearly one month on Monday after top metals consumer China said it would take more action to boost its economy.
For copper, used in power and construction, this support faded on Tuesday as data showed that China’s total exports growth missed expectations, imports unexpectedly shrank in November and concerns about prospects for China’s construction sector persist.
The focus is now on China’s Central Economic Work Conference meeting due this week for more clarity on the country’s next year’s key targets and potential economy stimulus measures.
“We believe it will take more than just stimulus measures to fully rejuvenate economic growth,” analysts at broker Sucden Financial said in a note.
Copper jumps to approach one-month high on China hopes
China’s November copper imports, however, hit a one-year high, the customs data showed, supported by restocking amid expanding manufacturing activity and lower prices for the metal. Copper is down 9% since touching a four-month peak of $10,158 on Sept. 30.
The U.S. currency rose, making dollar-priced metals less attractive for buyers holding other currencies, as traders looked ahead to a U.S. inflation reading on Wednesday for further clues on the pace of Federal Reserve easing.
LME aluminium was steady to $2,587.50 a metric ton, zinc fell 0.2% to $3,119, lead decreased 0.1% to $2,065.50, while tin eased 0.2% to $29,815.
Nickel dropped 1.1% to $15,810. Major producer Nornickel expects the surplus in the global nickel market to remain at 150,000 tons in 2025.
Source: Brecorder
