BANGALORE: London copper prices were little changed on Thursday after rebounding from 5-1/2-month lows in the previous session, as concerns about demand from top consumer China overshadowed optimism about a deal to extend the US debt ceiling.

Three-month copper on the London Metal Exchange was steady at $8,308 by 0253 GMT, after dropping to its lowest since Nov. 30 at $8,088.50 a tonne on Wednesday.

The most-traded copper contract on the Shanghai Futures Exchange climbed 2.3% to 65,800 yuan ($9,519.54) a tonne.

US President Joe Biden and top US congressional Republican Kevin McCarthy on Wednesday expressed optimism over reaching a deal to raise the federal government’s $31.4 trillion debt ceiling.

Biden will continue talks with congressional leaders on the nation’s debt limit later this week, aiming to avoid a default that if breached could push the US economy into a recession.

Copper hits 5-1/2-month low as slowing China recovery weighs

In top metals consumer China, industrial output and retail sales grew slower than expected last month, reinforcing concerns of a spillover into the wider global economy and a drop in demand for industrial metals.

Copper prices are down nearly 15% from a seven-month high of $9,550.50 a tonne hit in January.

The global copper concentrate market will see a steep deficit during 2025-2027 as Asian smelters ramped up capacity amid a lack of matching mining projects in the pipeline, analysts have said.

Meanwhile, lawmakers in top producer Chile’s lower house of Congress gave final approval on Wednesday for a long-awaited mining tax reform, that would require large copper producers to pay more taxes and royalties to the government.

Among other metals, LME aluminium was flat at $2,297 a tonne and zinc rose 0.3% to $2,532 a tonne.