LONDON: Copper prices held in positive territory on Friday after China pledged more support for its ailing economy, though gains were capped by uncertainty surrounding the threat of US tariffs on the world’s biggest metal consumer.
Three-month copper on the London Metal Exchange (LME) added 0.1% to $8,811 a metric ton in official open-outcry trading, holding above the $8,757 five-month low touched on Tuesday.
China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planning official said on Friday.
“The Chinese news is keeping our head above water, but we’re facing an interesting year with the tariffs and the market trying to work out what kind of impact they may have on prices,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
US President-elect Donald Trump has vowed to impose tariffs of 10% on global imports into America, along with a 60% tariff on Chinese goods. The potential tariffs and disappointment about the level of stimulus Beijing has provided to boost flagging economic growth has weighed on copper prices, which have slid 13% since hitting a four-month peak of $10,158 on Sept. 30.
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