Market Outlook: Copper Prices Trend Upward, Market Awaits China’s Stimulus Hints

Copper prices rose as market traders looked for more signs of stimulus measures from China, directing weekly gains following a decline in the US dollar.

Three-month copper on the London Metal Exchange (LME) increased by 0.5% to $9,117 per ton as of 06:07 GMT, marking a weekly gain of 1.2% so far. In the Shanghai Futures Exchange (SHFE), the January copper contract rose by 0.2% to 74,630 yuan per ton ($10,283.44), also recording a 1.2% increase on a weekly basis.

The rise in the US dollar continued to cool off on Friday, making metals more affordable for holders of other currencies. Attention is on China's Central Economic Work Conference scheduled for this month. Investors have so far expressed disappointment over the lack of aggressive fiscal stimulus measures to revitalize the country's stagnating economy.

Analysts noted, "Decreased demand due to trade tariffs in China could lead to the country's stimulus measures focusing on supporting domestic demand, or a stronger recovery could be seen in developed markets."

On the LME, aluminum traded at $2,633 per ton, down 0.2%; tin fell by 0.5% to $29,010 per ton; lead remained steady at $2,099.5 per ton; zinc saw a 0.1% increase, trading at $3,122.5 per ton; and nickel rose by 0.3% to $16,020 per ton.