Market Outlook: Copper Rises on China’s Stimulus Hopes

Copper prices in London rose on expectations of stimulus measures from China following recent statements from policymakers indicating more action for the economy. However, steady gains in the U.S. dollar limited the increase.

Three-month copper on the London Metal Exchange (LME) rose by 0.5% to $9,241 per ton at 07:10 GMT.

The January copper contract on the Shanghai Futures Exchange (SHFE) traded at 75,500 yuan per ton ($10,396.01), marking a 0.01% increase.

Attention is focused on China’s Central Economic Work Conference this week for more clarity on key targets and potential stimulus measures for the coming year.

While market participants are betting that the U.S. Federal Reserve will cut interest rates next week, the U.S. dollar remained in a narrow range, supported by an increase in U.S. Treasury yields after reaching a two-week high in the previous session.

Additionally, it was reported that China may consider allowing a weaker currency next year in preparation for higher trade tariffs under a second Donald Trump presidency.

Analysts noted that news suggesting China might consider a weaker yuan to defend against U.S. import tariffs has created downward pressure on market sentiment, potentially leading to capital outflows and declines in the stock market.

On the LME, aluminum was up 0.6% at $2,617.5 per ton, nickel increased by 1.4% to $16,080 per ton, zinc rose by 0.2% to $3,130.5 per ton, lead decreased by 0.2% to $2,038.5 per ton, and tin experienced a 0.1% rise to $29,995 per ton.