Copper prices declined on Tuesday, shedding some of the gains made on Monday when the metal hit a nearly one-month high. The dip comes amid disappointing trade data from China and a stronger U.S. dollar, dampening market sentiment while investors await further guidance from China’s economic planning for 2025.
Market Movement
- London Metal Exchange (LME): Three-month copper fell 0.4% to $9,198 per metric ton as of 1056 GMT. This follows Monday’s 1.2% rise, driven by China’s announcement of further economic support measures.
- China Trade Concerns: November trade data revealed slower-than-expected export growth, unexpected declines in imports, and persistent worries about the construction sector, undermining copper’s earlier momentum.
China’s Role and Outlook
China, the world’s largest consumer of copper, reported November copper imports at a one-year high, driven by restocking and lower metal prices. However, analysts remain cautious, noting that sustained economic recovery will require more than isolated stimulus measures.
The market is now focused on China’s Central Economic Work Conference this week, which is expected to unveil key targets and possible new stimulus initiatives for 2025.
Dollar’s Strength Adds Pressure
A strengthening U.S. dollar made dollar-denominated metals less attractive for holders of other currencies. Market participants are also eyeing the upcoming U.S. inflation data for clues on Federal Reserve policy changes.
Other Metals Performance
- Aluminium: Steady at $2,587.50 per metric ton.
- Zinc: Down 0.2% to $3,119.
- Lead: Decreased 0.1% to $2,065.50.
- Tin: Eased 0.2% to $29,815.
- Nickel: Fell 1.1% to $15,810. Nornickel, a major producer, projects a global nickel market surplus of 150,000 tons in 2025.
Despite the current downward pressures, copper prices remain closely tied to China’s economic trajectory and global monetary trends, with traders keenly awaiting policy announcements and further economic indicators.
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