Copper prices eased on Thursday, pressured by a stronger dollar and worries that potential US tariffs on Chinese goods could dampen metals consumption.
Three-month copper on the London Metal Exchange (LME) eased 0.1% to $9,013.50 per metric ton by 0555 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) dipped 0.2% to 73,830 yuan ($10,190.19) a ton.
The dollar index edged higher, making greenback-priced metals more expensive to holders of other currencies.
Earlier this week, US President-elect Donald Trump said he will impose an additional 10% tariffs on all Chinese goods after he takes office in January.
Copper prices will be trading within a tight range for the short term as people are waiting for more details on Trump’s policies and how the Chinese government reacts to them, said analyst Matt Huang at broker BANDS Financial.
Some investors are also awaiting key policy meetings in China and companies’ earnings reports to gauge their annual performances, he said.
“We will be here for a while but if the US dollar depreciates a lot copper price will go up,” Huang said.
However, supporting copper at $9,000, a key resistance level, is solid buying from China.
“It’s all about the absolute price. At $9,000 they will buy more,” Huang said. Copper inventories in SHFE warehouses dropped to their lowest since Feb. 5 at 120,236 tons.
Copper rises with weaker dollar, revived bets on China stimulus
LME aluminium eased 0.2% to $2,588 a ton, while nickel rose 0.9% to $16,025, zinc edged down 0.8% at $3,107, lead increased 0.3% to $2,063 and tin fell 0.2% to $27,900.
SHFE aluminium fell 1.2% to 20,305 yuan a ton, tin dropped 2% to 233,290 yuan, while nickel rose 0.4% to 127,060 yuan, zinc climbed 0.4% to 25,675 yuan and lead advanced 1% to 17,405 yuan.
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