London copper prices were subdued on Wednesday as the dollar regained some ground, while concerns over China’s demand outlook and potential US tariffs persisted.

Three-month copper on the London Metal Exchange (LME) was flat at $9,114.5 per metric ton by 0712 GMT, trading below a nearly two-week high hit on Tuesday.

The US dollar recovered from a three-week low and nudged higher against major rivals, making greenback-priced metals more expensive for holders of other currencies.

“For metals, the questions are largely about what trade policies the US is likely to adopt and how China will respond,” HSBC analysts said. US President-elect Donald Trump has threatened to impose huge tariffs on Chinese imports.

On Tuesday, Beijing banned exports of items related to gallium, germanium and antimony to the US, a day after Washington’s latest crackdown on the country’s chip sector.

J.P. Morgan maintains a near-term bearish stance on base metals, noting that the pricing in of a potential China tariff risk premium is likely to persist for several more months before any potential positive catalysts, such as a reactive boost to Chinese stimulus, are expected to materialize.

Copper edges up as dollar pauses rally

Traders are looking forward to the Central Economic Work Conference this month in China, the world’s top metals consumer, for signs of further monetary or fiscal support.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) closed nearly 1% higher at 74,750 yuan ($10,288.21) a ton.

SHFE aluminium added 1% at 20,580 yuan a ton, nickel rose 2.6% to 127,890 yuan, tin added 0.7% at 243,640 yuan, zinc increased 0.4% to 25,465 yuan and lead steadied at 17,610 yuan.

LME aluminium rose 0.3% to $2,616 a ton, nickel gained 0.7% at $16,130, zinc edged 0.1% higher to $3,098.5, lead firmed 0.1% at $2,082 and tin increased 0.5% to $28,965.