Market Outlook: Copper Declines Amid Strong Dollar and Weak Chinese Demand

Forex - Copper prices declined, following a strengthening dollar and quiet demand expectations in China.

Three-month copper on the London Metal Exchange (LME) fell by 0.1% to $9,130 per ton at 07:08 GMT. The contract had dropped to $9,107 per ton yesterday, marking its lowest level since September 11.

On the Shanghai Futures Exchange (SHFE), the December copper contract decreased by 1.7% to 74,540 yuan per ton ($10,318.81).

The US dollar remained close to a six-and-a-half-month high against major rivals.

Analysts indicated that they believe copper is at the lower end of its trading range and expressed expectations for a potential mild price recovery next week.

Investors are also concerned about the impact of elected President Donald Trump's policies on China.

One analyst noted, "The uncertainty about what Donald Trump's return to the White House will mean for the global economy has also weakened sentiment."

The scale of China’s latest stimulus measures aimed at reviving its lackluster economy has also increased investor disappointment.

On the LME, aluminum traded at $2,553.5 per ton, down 0.4%, nickel rose by 0.2% to $15,925 per ton, zinc fell by 0.02% to $2,937.5 per ton, lead increased by 0.6% to $2,037 per ton, and tin was down 1.4% at $29,800 per ton.