MARKET OUTLOOK - Copper in London Falls Under Dollar Pressure and Trump's Tariff Threat

Copper prices in London fell for the second consecutive session, pressured by a rising US dollar and uncertainty regarding potential US tariffs. At the London Metal Exchange (LME), three-month copper traded at $8,964 per ton, down 0.3% after hitting the lowest level in over two weeks yesterday at 5:45 AM GMT.

The January copper contract on the Shanghai Futures Exchange (SHFE) rose 0.2% to 73,890 yuan per ton ($10,129.27).

Markets are concerned about President-elect Donald Trump's proposed import tariffs, which could harm global economic growth. Trump's promises may disrupt the global supply-demand balance for metals and potentially lead to price volatility.

One analyst noted, "Copper prices are likely to remain range-bound with a negative trend for the remainder of the year. People unsettled by Trump's statements may decide to sell off some assets ahead of the inauguration."

Analysts expect that base metal prices will trend downward through 2025 and 2026, with weak activity in China being a significant factor.