NEW DELHI: London copper prices nudged lower on Friday and were on track for weekly losses on the back of a stronger US dollar and lack of clarity around China’s stimulus measures.
Three-month copper on the London Metal Exchange (LME) shed 0.2% at $9,074 per metric ton, as of 0319 GMT, to drop 0.5% for the week so far.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) fell 1.1% to 74,580 yuan ($10,250.98) a ton.
The US dollar rose to a 2-1/2-week high against major peers on the day, making greenback-priced metals more expensive for holders of other currencies.
China on Thursday pledged to increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate as it gears up for more trade tensions with the United States as Donald Trump returns to the White House.
The readout of an annual agenda-setting meeting, however, did not disclose the size of the stimulus measures.
“We highlight that the market is poised for a period of significant price volatility, with anticipated US dollar strength and shifts in trade policies following a Trump victory acting as major headwinds, while the outlook remains heavily contingent upon China’s economic momentum,” said BMI, a unit of Fitch Solutions.
Copper edges up on China stimulus hopes
LME aluminium dipped 0.2% at $2,595 a ton, zinc fell 0.5% at $3,061, nickel eased 0.2% to $16,130, lead dropped 0.3% to $1,999.5 and tin fell 0.3% to $29,460.
SHFE aluminium lost 0.5% to 20,380 yuan a ton, tin fell 1.1% to 248,150 yuan, zinc declined 1.2% to 25,570 yuan, lead dropped 0.9% to 17,365 yuan while nickel advanced 0.9% at 128,670 yuan.
Source: Brecorder
