NEW DELHI: London copper prices nudged higher on Thursday amid expectation of stimulus measures from top consumer China in the wake of the recent announcement that policymakers would do more for the economy.
However, a steady U.S. dollar kept gains in check.
Three-month copper on the London Metal Exchange (LME) was up 0.5% at $9,241 per metric ton, as of 0410 GMT.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) was up 0.01% to 75,500 yuan ($10,396.01) a ton.
The focus is on China’s Central Economic Work Conference meeting this week for more clarity on key targets and potential stimulus measures for next year.
China earlier this week said it would switch to an “appropriately loose” monetary policy stance, and “more proactive” fiscal levers next year.
Meanwhile, the U.S. dollar traded in a narrow range on Thursday after hitting a two-week high in the previous session, supported by a rise in U.S. Treasury yields, even as market players bet the U.S. Federal Reserve will cut interest rates next week.
Copper prices near one-month high on China policy optimism
A strong greenback makes dollar-priced metals more expensive for holders of other currencies.
Separately, Reuters reported China was considering allowing a weaker currency next year as the country braces for higher trade tariffs in a second Donald Trump presidency.
“Reports that China is considering a weaker CNY (yuan) to defend against U.S. import tariffs weighed on the market sentiment, as this could lead to capital outflows and a declining equity market,” ANZ Research said in a note.
LME aluminium was up 0.6% at $2,617.5 a ton, nickel gained 1.4% to $16,080, zinc was up 0.2% at $3,130.5, lead nudged 0.2% lower to $2,038.5 and tin gained 0.1% to $29,995.
SHFE aluminium edged up 0.7% to 20,515 yuan a ton, nickel was up 2.9% at 128,950 yuan, tin added 1.1% to 251,490 yuan, while zinc rose 0.3% to 25,985 yuan and lead dropped 0.7% to 17,530 yuan.
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