Copper set for second straight monthly fall on demand worries

Copper prices rose on Friday, supported by a softer dollar, but remained on track for a second straight monthly fall due to demand concerns amid possible U.S. tariffs and a lack of aggressive Chinese stimulus.

The dollar index =USD was last down 0.3%, making greenback-priced metals cheaper to holders of other currencies.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.3% to $9,029 per metric ton by 0731 GMT.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed nearly flat at 73,830 yuan ($10,216.28) a ton.

However, SHFE copper posted its second straight monthly loss while LME copper is also set for a decline in November amid concerns that U.S. President-elect Donald Trump will impose more tariffs on imports, which would hurt economic growth and metals consumption, especially in China.

Beijing’s stimulus measures so far have also been less than expected and have not directly targeted sectors that consume metals.

“Trump’s arrival, and thereby the dollar strength, and failure of Chinese stimulus to show colour on economic data were the key drivers for this month’s fall in metal prices,” said Sandeep Daga, director at Metal Intelligence Centre.

“In the last couple of weeks, traders were exiting the LME complex, ahead of a likely volatile next quarter.”

LME copper prices, which have declined nearly 20% from a record high of $11,104.50 hit in May, were supported by solid Chinese demand around the key resistance level of $9,000.

SHFE copper stockpiles dropped to 108,775 tons, the lowest since Feb. 5. CU-STX-SGH

LME aluminium CMAL3 rose 0.3% to $2,605.50 a ton, nickel CMNI3 fell 0.5% to $15,985, lead CMPB3 climbed 0.9% to $2,075.50, tin CMSN3 jumped 1.8% to $28,700, while zinc CMZN3 fell 0.4% to $3,041.

SHFE aluminium SAFcv1 gained 0.2% at 20,390 yuan a ton, nickel SNIcv1 fell 0.3% to 126,010 yuan, tin SSNcv1 jumped 2.4% to 239,430 yuan, while zinc SZNcv1 dropped 2.6% to 25,200 yuan and lead SPBcv1 rose 0.2% to 17,395 yuan.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich, Sumana Nandy and Varun H K)