LONDON: Copper prices steadied after hitting a 10-week high on Wednesday as the dollar rose, weakening support from the latest economic stimulus measures in top metals consumer China.

Three-month copper on the London Metal Exchange was up 0.2% at $9,817.50 per metric ton at 1635 GMT. The metal, used in power and construction, hit $9,913, its highest since July 15, earlier in the session.

China’s central bank lowered the cost of its medium-term loans to banks, a day after it announced plans to lower borrowing costs, inject more funds into the economy, and ease households’ mortgage repayment burden.

The US dollar was higher on Wednesday afternoon, making dollar-priced metals less attractive for buyers using other currencies, and the Chinese yuan gave back earlier gains.

Beijing’s measures will not be enough to fix all the problems in the Chinese economy, even though important moves were made to support the property market, said Dan Smith, head of research at Amalgamated Metal Trading (AMT).

At the same time, current demand is reasonably good in China at least for copper and aluminium, and the supply side is very tight for both of the metals, he added.

With the start of the US interest rate easing cycle and China’s stimulus measures, AMT expects prices for copper, aluminium, zinc and tin to rise by the second quarter of 2025. Lead and nickel prices are likely to fall due to weaker fundamentals, it added.

The global nickel market surplus will rise to 170,000 tons in 2024 from 167,000 tons in 2023, according to the International Nickel Study Group (INSG). Next year, the INSG expects the surplus at 135,000 tons amid growth in the stainless steel sector in China and Indonesia, but also slower than expected growth of nickel use in batteries for electric vehicles. LME aluminium dipped 0.7% to $2,537 a ton, zinc fell 0.6% to $2,991, lead added 0.7% to $2,098.50, tin fell 2.4% to $31,855 and nickel rose 0.2% to $16,735.