Copper Prices Decline Amid Uncertainty Over Chinese Stimulus

Forex - Copper prices in London fell due to uncertainty surrounding stimulus signals from China's economic conference this month, the largest consumer. The three-month copper contract on the London Metal Exchange (LME) dropped by 0.4% to $9,086.5 per metric ton as of 0529 GMT.

Meanwhile, the most traded January copper contract on the Shanghai Futures Exchange (SHFE) rose by 0.2% to 74,670 yuan ($10,259.83).

Market focus is on China's Central Economic Work Conference this month, where senior leaders will set growth targets.

So far, investors have been disappointed by China's lack of aggressive fiscal stimulus measures to revitalize its stagnant economy. Natalie Scott-Gray, senior metals analyst at StoneX EMEA & Asia, stated, “Any signals for higher monetary or fiscal stimulus will be well received - however, the market seems to be set on a presumed disappointment from China’s stimulus efforts so far.”

LME aluminum fell by 0.65% to $2,586.5 per ton, zinc decreased by 0.21% to $3,065, lead declined by 0.4% to $2,063, nickel dropped by 0.4% to $15,990, and tin saw a 0.26% loss at $29,075.