BEIJING: Copper prices, often seen as an economic indicator, were set for a yearly gain thanks to low global stocks and solid demand from top consumer China, and as prospect of US interest rate cuts brightened outlook for the metal.
Three-month copper on the London Metal Exchange (LME) ticked 0.1% up to $8,629.50 per metric ton by 0409 GMT. The contract has gained 3.1% so far this year, partly reversing a decrease of 13.9% in 2022.
China’s copper demand climbed 3.2% this year after the country dropped its zero-COVID policy, according to analysts at brokerage China Futures.
The annual growth will slowdown to 2.8% in 2024, as housing sector remains sluggish but partly offset by increasing investment in power grid, strong solar and wind power sectors, they added.
Copper is widely used in power, construction and transportation sectors.
The dollar index dipped on Friday on expectation the Federal Reserve will cut interest rates from March next year.
Copper steadies amid dollar weakness, supply concern
That is believed to boost global copper demand.
The market was also underpinned by thin stocks and tighter supply outlook of copper concentrate. China’s top copper smelters on Thursday lowered their first-quarter guidance for copper charges as mine closures and disruptions sparked fears over raw material supplies.
The most-traded February copper contract on the Shanghai Futures Exchange (SHFE) slid 0.9% to 68,860 yuan ($9,701.73) per ton. It has risen 6.7% so far in the year.
LME aluminium was unmoved at $2,377 a ton, tin slid 0.6% to $25,540, zinc added 0.1% to $2,644, lead was unchanged at $2,086, and nickel fell 0.7% to $16,625.
SHFE aluminium slid 0.2% to 19,520 yuan a ton, nickel declined 2.4% to 127,160 yuan, and tin slipped 1.4% at 211,500 yuan, while zinc moved 0.1% up to 21,510 yuan, lead gained 0.1% to 15,890 yuan.
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