BEIJING: Prices of copper were steady on Wednesday, supported by a weak dollar and concern over tight global raw material supplies.

Three-month copper on the London Metal Exchange gained 0.3% to $8,603 per metric ton by 0158 GMT as trade resumed after the Christmas holiday.

The most-traded February copper contract on the Shanghai Futures Exchange was little changed at 69,150 yuan ($9,672.28) per ton.

The dollar index edged higher, but held close to a five-month low.

The greenback was on track for its worst performance since 2020 against a basket of currencies as rising expectation of interest rate cuts from the Feral Reserve dents the appeal of the US currency relative to peers.

A weaker dollar makes it cheaper to buy the greenback-priced metal. Spot demand in China was subdued after a burst of restocking seen recently, reversing premiums to discounts of 110 yuan per ton on Tuesday.

That said, the market was still underpinned by concern over tight raw material supplies amid recent mine closures and expectation of tight supply in 2024.

Funds less negative on copper as supply landscape shifts

LME aluminium shed 0.9% at $2,305 a ton, zinc slid 0.3% to $2,594, while lead climbed 0.4% to $2,072, nickel added 1.8% at $16,800, and tin rose 2.9% to $25,575.

SHFE aluminium increased 0.3% to 19,245 yuan a ton, tin rose 2.5% to 213,360 yuan, lead ticked 0.2% up to 15,750 yuan, while zinc slipped 0.4% to 21,305 yuan and nickel was down 0.4% to 129,990 yuan.