Copper slipped on Wednesday after US President-elect Donald Trump gave little guidance on new infrastructure spending at a press conference in New York, disappointing some who had hoped for a clearer view on policy. The metal, used in construction, surged more than 10 percent in the month following Trump's election to the US presidency on November 8, as his pledge to boost spending unleashed a wave of investment in industrial commodities.
Three-month copper on the London Metal Exchange closed down 0.8 percent at $5,714 a tonne on Wednesday, off an earlier peak of $5,788.50, its highest since December 13. "I think the markets were hoping for more, so they were disappointed," Societe Generale analyst Robin Bhar said. "Copper is now down almost $50 on the day. "If (Trump) isn't going to bolster growth through fiscal spending, then that's got to be slightly disappointing compared to the hopes that were being built up post his election win," he added. "It's still hope over reality at the moment."
In his first formal news conference since July, Trump blasted two news organisations for reporting unsubstantiated claims about his ties to Moscow, but praised other reporters for holding back. The dollar and equities both lost ground after his initial remarks, before recovering some poise as the news conference went on. Copper remains up more than 3 percent so far this year after Chinese and global economic data fuelled expectations for firm demand in 2017.
"Manufacturing indicators still look good, which could suggest that the global economy has got off to a good start in 2017," Danske Bank analyst Jens Pedersen said. "That is supporting prices." Further underpinning the metal are rising concerns over supply disruptions. Workers at Chile's Escondida copper mine - the world's biggest - have already rejected a wage offer from BHP Billiton, raising the prospect of a strike.
Zinc fell after the previous day's rally, though it remained supported by broader supply concerns. Processing fees for China's zinc smelters reached record lows last month as the supply from mines continued to dwindle. LME zinc closed at $2,699 a tonne, down 0.8 percent, while lead ended the day down 2.6 percent at $2,134 a tonne, having rallied nearly 6 percent in the last two sessions. LME aluminium closed up 0.5 percent at $1,758 a tonne, while tin was little changed at $21,150. Nickel closed down 4.1 percent at $10,180.
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