LONDON Copper prices came under pressure on Monday from concern over weak demand in top consumer China, though losses were contained by mine closures and disruptions that raised the prospect of tighter supplies.
Benchmark copper on the London Metal Exchange (LME) traded 0.4% down at $8,516 a metric ton in official rings. Prices of the metal used in the power and construction industries touched four-month highs at $8,640 a ton this month.
China’s troubled property market has weighed on industrial metals demand for most of the year despite government measures to support the sector. Julius Baer analyst Carsten Menke expects energy transition demand for copper to offset the slowdown in China.
Also helping sentiment were cuts to Anglo American’s copper production guidance, by 20% and 18% respectively for next year and 2025. Expectations that the Federal Reserve could cut US interest rates in the first quarter of next year are weighing on the dollar, which is hovering near 4-1/2-month lows against a basket of major currencies.
A falling US currency makes dollar-priced metals cheaper for holders of other currencies, which could help demand.
Elsewhere, aluminium prices fell after data showed stocks in LME-approved warehouses jumped by 59,850 tons to 504,475 tons, the highest level since early October.
However, the impact was brief as funds cut short positions, helping to push aluminium prices back towards last Friday’s five-week high of $2,269.50. Three-month aluminium was up 0.6% at $2,261 a ton. In other metals, zinc gained 0.5% to $2,545, lead advanced 0.4% to $2,090, tin was down 0.6% at $25,025 and nickel dropped 1.6% to $16,875.
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