LONDON: Copper prices in London eased under pressure from a stronger dollar and technical factors on Wednesday while the market awaits more clarity on demand prospects in top metals consumer China and possible trade tariffs.
Three-month copper on the London Metal Exchange (LME) was down 0.5% at $9,066 a metric ton in official open-outcry trading. The metal used in power and construction rose 1.3% on Tuesday and closed at the highest since Nov. 12. But it remains range bound while investors watch for developments on import tariffs threatened by US President-elect Donald Trump and possible retaliation from China.
“Copper has settled into a wide $8,900-$9,200 range which it is likely to stay within while we wait for more information,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Speculative length remains weak, leaving the market exposed to an upside surprise move within the range as we saw on Tuesday when a technical break gave the metal some upside momentum that is being partly reversed today.” On the supply side, mining giant Rio Tinto, on Wednesday forecast higher copper production in its 2025 financial year.
Copper miner Freeport Indonesia said its Manyar smelter in East Java would ramp up in the third quarter of 2025 after operations were halted by a fire. Politics were also in focus as South Korean lawmakers called on President Yoon Suk Yeol to resign or face impeachment after he declared martial law late on Tuesday only to reverse the move hours later.
South Korea is home to a significant share of aluminium and copper stocks in LME-registered warehouses. Meanwhile, aluminium rose 0.2% to $2,614 a ton in official activity, zinc was down 0.2% at $3,091, lead held steady at $2,080 while tin lost 0.3% to $28,750 and nickel slipped by 0.3% to $15,975. The LME said that US broker Clear Street has joined its open-outcry trading floor, bringing the number of dealing members back to eight.
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