MARKET OUTLOOK - Copper Remains Flat Ahead of U.S. Elections and Major China Meeting

Copper prices remained steady as market traders prepared for the contentious U.S. presidential election and anticipated further stimulus measures from China.

At the London Metal Exchange (LME), the three-month forward copper contract traded flat at $9,533 per ton as of 06:24 AM GMT, while at the Shanghai Futures Exchange (SHFE), December copper futures remained stable at 76,490 yuan per ton ($10,722.95).

With candidate races in the U.S. neck-and-neck ahead of November 5, China's top legislative body is set to convene from November 4 to 8. Sources indicated that the country is considering approvals for over 10 trillion yuan in additional debt issuance in the coming years to stimulate its fragile economy, with decisions expected next week.

A metal trader noted that rising tensions in the Middle East have led investors to seek safe-haven assets such as gold and the U.S. dollar, diminishing risk appetite in other markets like base metals.

Copper import premiums to China are also declining, dropping to $48 per ton yesterday, marking the lowest level since August 5, indicating weak demand.

At the LME, aluminum saw a 0.1% increase to $2,661 per ton, nickel rose 0.1% to $15,885 per ton, lead increased by 0.3% to $2,009.50 per ton, while tin decreased by 0.1% to $31,065 per ton, and zinc fell by 0.3% to $3,111.50 per ton.