Market Outlook: Copper Approaches a One-Month High on Optimism Over China's Policy

Copper prices in London surged to a nearly one-month high, supported by China's announcement that it would ease monetary policy and adopt a proactive fiscal policy to bolster growth next year.

Three-month copper on the London Metal Exchange (LME) rose by 0.8% to $9,290 per ton at 06:53 GMT. The contract briefly reached $9,314 per ton, marking its highest level since November 12.

The January copper contract on the Shanghai Futures Exchange (SHFE) increased by 0.4% to 75,690 yuan per ton ($10,443.31).

According to a statement from the Politburo on Monday, China will adopt a more proactive fiscal policy to stimulate economic growth, alongside a "reasonably loose" monetary policy, which has been eased for the first time in nearly 14 years.

The copper market anticipates further support for the Chinese economy, particularly in the construction sector. However, analysts indicate that without clear signs of a sustainable recovery in the construction industry, it will be challenging for the market to establish a lasting upward trend.