Market Overview: Copper Braces for Weekly Decline Amid Disappointing Chinese Stimulus

Copper prices saw a slight increase today but are on track to end the week lower as China's stimulus measures have not eased demand concerns. On the London Metal Exchange (LME), three-month copper rose by 0.3% to $9,536 per ton as of 06:44 GMT, while the December copper contract on the Shanghai Futures Exchange (SHFE) edged up by 0.1% to 76,600 yuan per ton ($10,749.97). Copper on the LME is set for its fourth consecutive weekly decline, with SHFE copper also heading for a weekly drop.

China has announced a series of supportive measures to boost growth, but the scale of support so far has not alleviated demand concerns. On the LME, aluminum fell by 1.7% to $2,605.50 per ton, retracting from nearly a five-month high reached in the previous session amid concerns over raw material supply. Zinc on the LME dropped by 1.4% to $3,130 per ton but is poised for weekly gains due to tightness in near-term supply after reaching a 20-month high yesterday.

An analyst commented, “It’s not the first time that metals have been caught up in supply disruption or ore scarcity stories, ignoring the slowdown in demand. However, in most such times, prices have entered a downward trend for a few months.” The analyst expects LME copper to potentially fall to $9,200 per ton.

Nickel on the LME declined by 0.4% to $16,230 per ton, lead decreased by 0.2% to $2,070 per ton, and tin was down by 0.4% to $31,000 per ton. On the SHFE, aluminum fell by 1.2% to 20,785 yuan per ton, zinc decreased by 0.4% to 25,245 yuan per ton, tin dropped by 0.4% to 253,750 yuan per ton, while nickel rose by 0.3% to 126,310 yuan per ton, and lead increased by 0.2% to 16,790 yuan per ton.