LONDON: Copper prices held steady on Friday after US President Joe Biden embraced a bipartisan Senate infrastructure deal valued at $1.2 trillion over eight years, which helped reinforce expectations of stronger demand. However, worries about the US Federal Reserve tightening monetary policy sooner than expected subdued some of the optimism and weighed on copper prices in afternoon trade, traders said.
Benchmark copper on the London Metal Exchange was little changed at around $9,417 a tonne at 1605 GMT. Prices of the metal used in the power and construction industries are up around 5% this week.
"It's been a US-led week, the Fed is walking things back a bit and the infrastructure plan added to impetus," said Citi analyst Oliver Nugent. "This is a year when demand growth is really all about the world outside China."
Metals markets typically focus on China, which accounts for about half of global consumption of industrial metals. Copper stocks in LME registered warehouses at 210,975 tonnes are up nearly 90% since May 12 and at their highest since July last year.
Most of that copper - 203,875 tonnes - is on warrant meaning it is available to the market. Three-month tin was up 0.5% at $30,800 a tonne. Aluminium added 1.9% to $2,486, zinc fell 0.4% to $2,903, lead gained 0.2% to $2,225 and nickel climbed 0.8% to $18,545.
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