Copper steady on China optimism, set for second monthly decline

Copper prices were little changed on Friday, supported by emerging signals of firmer demand in top metals consumer China but undermined by uncertainty over potential U.S. tariffs.

Three-month copper CMCU3 on the London Metal Exchange (LME) was down 0.1% at $8,990 a metric ton in official open-outcry trading and set for a 5.3% decline for November.

“The fundamentals are firm at the moment, it’s just that we don’t know what’s down the road in terms of tariffs, so markets are cautious to move in a decisive manner,” said WisdomTree commodity strategist Nitesh Shah.

U.S. President-elect Donald Trump has threatened to impose tariffs on imports, which would hurt economic growth and metals consumption, especially in China.

The most traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed almost flat at 73,830 yuan ($10,216.28) a ton, posting a second straight monthly loss.

“China is in wait-and-see mode, until they know how bad the tariffs are going to be, before deploying some of its dry powder in terms of fiscal stimulus,” Shah added.

LME copper has shed 11% since touching a four-month peak of $10,158 on Sept. 30 as investors sold off bullish positions on potential tariffs and disappointment over the lack of aggressive Chinese stimulus.

Some positive signs, however, have been emerging in China, including SHFE inventories that have tumbled by two thirds since early June to 108,775 tons, their lowest since Feb. 5.

Investors are also hoping that coming data will show China’s stimulus is starting to filter through.

Analysts in Reuters polls expected that China’s factory activity expanded modestly for a second consecutive month in November while home prices are expected to stabilise in 2026 after slower falls this year and next.

Also bolstering metals was weakness in the dollar .DXY, making dollar-priced metals cheaper for buyers using other currencies.

In other metals, LME aluminium CMAL3 fell 0.5% to $2,585.50 a ton, nickel CMNI3 was down 0.5% at $15,990, lead CMPB3 rose 0.8% to $2,073 and zinc CMZN3 wa up 1.1% at $3,088 while tin CMSN3 added 0.7% to $28,400.
Source: Reuters (Reporting by Eric Onstad, Additional reporting by Mai Nguyen in Hanoi, Editing by David Goodman)