BEIJING: London copper prices slid from its two-month highs on Wednesday due to a firmer US dollar and renewed economic risks, although losses were capped by firm supply-demand outlook.
Three-month copper on the London Metal Exchange eased 0.3% to $8,426.50 per metric ton by 0452 GMT, after hitting its highest level since Sept. 15 on Tuesday.
The most-traded December copper contract on the Shanghai Futures Exchange shed 0.3% to 68,070 yuan ($9,439.61)per ton.
The dollar index strengthened from 2-1/2-month lows, after minutes from the Federal Reserve’s meeting gave little clues on interest rate cuts.
A stronger dollar makes it cheaper for non-dollar holders to buy the greenback-priced commodity.
The S&P 500 will end next year only about 3% higher than its current level, with a possible US economic slowdown or recession among the biggest risks for the market in 2024, according to strategists polled by Reuters.
Elsewhere, Bank of England officials reiterated higher-for-longer stance on interest rates.
Analysts at Minmetal Futures said copper prices would likely remain on an upward trajectory amid low inventories and supply disruptions, including First Quantum Minerals’ Panama mine issues amid protests.
Limited supply and healthy demand in top metal consumer China underpinned imports, reflected by a recent rally in the Yangshan copper premium, which hit a one-year high this week.
China demand hopes drive copper to two-month peak
LME aluminium slid 0.4% to $2,248.50 a ton, tin dropped 1.1% to $24,705, zinc lost 0.9% to $2,522, lead decreased 0.5% to $2,260, and nickel fell 1.3% to $16,765.
SHFE aluminium lost 0.7% to 18,830 yuan a ton, zinc fell 1.5% to 21,045 yuan, lead slipped 1.1% to 16,730 yuan, nickel fell 2.5% to 130,840 yuan, and tin declined 1.1% to 206,260 yuan.
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