LONDON: Copper prices in London eased on Tuesday, reversing part of Monday’s 1.2% climb, under pressure from a slowdown in China’s export growth and a stronger dollar, while the market awaits more clues on China’s 2025 key targets.
Three-month copper on the London Metal Exchange (LME) was down 0.6% at $9,180 per metric ton in official open-outcry trading. The contract closed at its highest in nearly one month on Monday after top metals consumer China said it would take more action to boost its economy.
For copper, used in power and construction, this support faded on Tuesday as data showed that China’s total exports growth missed expectations, imports unexpectedly shrank in November and concerns about prospects for China’s construction sector persist.
The focus is now on China’s Central Economic Work Conference meeting due this week for more clarity on the country’s next year’s key targets and potential economy stimulus measures.
“It will take more than just stimulus measures to fully rejuvenate economic growth,” analysts at broker Sucden Financial said in a note. China’s November copper imports, however, hit a one-year high, the customs data showed, supported by restocking amid expanding manufacturing activity and lower prices for the metal. Prices for copper, down 10% since touching a four-month peak of $10,158 on Sept. 30, are expected to reach $9,700 by the end of 2025, according to analysts at Commerzbank.
The US currency rose, making dollar-priced metals less attractive for buyers holding other currencies, as traders looked ahead to a US inflation reading on Wednesday for further clues on the pace of Federal Reserve easing.
LME aluminium lost 0.1% to $2,585 a metric ton in official activity, zinc and lead were steady at $3,126 and $2,068, respectively, while tin eased 0.7% to $29,725.
Nickel dropped 1.1% to $15,815 under pressure from oversupply. Major producer Nornickel expects the surplus in the global nickel market to remain at 150,000 tons in 2025.
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