Copper prices edged up on Wednesday supported by a softer dollar but were confined to a narrow range with market participants eyeing more cues.
Three-month copper on the London Metal Exchange (LME) rose 0.2% to $9,021 per metric ton by 0349 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) was nearly flat at 73,870 yuan ($10,180.12) a ton.
US President-elect Donald Trump on Monday released details of his planned tariffs on China, Canada and Mexico, in which he pledged to add an additional 10% tariff on all Chinese goods.
Prices fell earlier in the week, but eventually bounced back, as the tariffs on China have so far been less than previously expected.
“The devil is very much in the detail on all these announcements. It’s all headlines and no detail right now,” said Guy Wolf, Global Head of Market Analytics at broker Marex.
Helping to support prices on Wednesday was a softer dollar which makes greenback-priced metals cheaper to holders of other currencies.
LME aluminium rose 0.1% to $2,614 a ton, nickel edged up 0.2% at $16,020, tin dropped 2.6% to $28,150, zinc increased 0.6% to $3,094.50 and lead advanced 0.5% to $2,031.
Copper bounces on bargain hunting and risk appetite
SHFE aluminium fell 0.4% to 20,520 yuan a ton, nickel declined 1.6% to 126,250 yuan, tin dropped 3.2% to 234,710 yuan, while zinc rose 2% to 25,610 yuan and lead increased 0.2% to 17,225 yuan.
China’s October industrial profits narrowed their earlier declines, helped by a low base the previous year, official data showed on Wednesday, but headwinds on earnings remain stiff with the economy still battling weak demand and deflation pressures.
Market participants have been hoping for China to release more stimulus measures to support the economy, which could boost metal consumption.
Source: Brecorder
