BENGALURU: Copper prices were little changed on Friday, with tightness in concentrate supply offsetting pressure from a firm US dollar, while most other base metals drifted lower.
Three-month copper on the London Metal Exchange (LME) steadied at $8,957 a metric ton by 1301 GMT after touching its highest since Dec. 18 at $9,018.50. Prices are up 4.6% this year.
The dollar index was on track for a fourth straight weekly gain, reflecting strength that makes dollar-priced metals more expensive for buyers holding other currencies.
China’s top copper smelters agreed to lowering of price guidance on processing charges for the first quarter of 2025, reflecting a lingering shortage of copper concentrates.
“In 2025 the rate cuts should lift economic activity and boost demand for copper. China will likely return to the market while mine supply is another factor to watch out for,” said Ajay Kedia, director at Kedia Commodities in Mumbai. “The first quarter of next year is likely to see the current consolidation continue, but prices should move higher in the second quarter.”
China, the leading consumer of base metals, announced various stimulus measures this year to maintain stable economic growth as it prepares for increased trade tensions with the United States after Donald Trump’s return to the White House.
Elsewhere, copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 4.7% from last Friday, the exchange said. In other metals, LME aluminium fell 0.9% to $$2,542 a ton, nickel lost 1.1% to $15,320, zinc was down 0.7% at $3,026 while tin gained 0.1% to $28,830 and lead dropped 1.1% to $1,962.
Source: Brecorder
