Market Outlook: Copper Remains Steady on LME Amid Anticipation of New Stimulus

Forex - Copper prices in London changed little as market participants sought more clues about China's financial stimulus and potential U.S. trade tariffs.

At the London Metal Exchange (LME), three-month copper traded at $9,078.5 per ton at 06:11 GMT today, following yesterday's closing price of $9,083 per ton.

The January copper contract at the Shanghai Futures Exchange (SHFE) fell by 0.5% to 74,430 yuan per ton ($10,241.20).

Traders are awaiting additional financial stimulus measures from the upcoming Central Economic Work Conference in China, the world's largest metal consumer.

At the same time, attention is focused on developments regarding potential import tariffs proposed by U.S. President-elect Donald Trump and any retaliatory actions from Beijing.

One analyst remarked, "A trade war between the U.S. and China comes at a time when growth in China is already struggling, and trade restrictions would further weaken demand. I believe this will continue to exert pressure on commodity demand, particularly copper demand."

The Chinese economy remains in a fragile position due to a prolonged real estate crisis, debt risks, and weak domestic demand.

Analysts indicated that supply response will be a dominant factor in rebalancing the metal markets.

Aluminum at the LME lost 0.5% to $2,633 per ton, while aluminum at the SHFE gained 0.4% to reach 20,540 yuan per ton.