LONDON: Copper prices dropped below $9,000 a metric ton on Thursday, weighed down by a stronger dollar, concern over global growth and demand in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) lost 0.5% to $8,977.50 a ton by 1102 GMT.
The U.S. currency index edged higher – reflecting strength that makes dollar-priced metals less attractive for buyers with other currencies – in thin trading because of the U.S. Thanksgiving holiday.
Investors are still awaiting further developments after U.S. President-elect Donald Trump’s pledges to impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China when he takes office in January.
“U.S. dollar strength, from the Trump effect, is holding everything back, though there is some cooling of the rally,” said SP Angel analyst John Meyer.
Copper rises with weaker dollar, revived bets on China stimulus
In a comment reminiscent of the trade war during Trump’s first term, China criticised Trump’s tariff vow on Thursday, saying that he imposition of “arbitrary tariffs on trading partners will not solve America’s own problems”.
Investors in industrial, growth-dependent metals are focused on China’s manufacturing purchasing managers’ index (PMI) data due this week and the Chinese Politburo meeting in early December for further clarity on the outlook for China’s economy.
In other metals, LME aluminium dropped 0.8% to $2,575 a ton while zinc shed 2.8% to $3,044.50, lead rose 0.3% to $2,062 and tin fell 1.7% to
$27,440.
Nickel was up 1.2% at $16,060 a ton. On the supply side, the main shareholder in Madagascar’s Ambatovy nickel producer said the project’s debt restructuring is expected to be completed in early December.
Source: Brecorder
