Current Market Status
Copper prices remained stable on Monday, maintaining the momentum from last week’s 1.2% gain, influenced by supply disruptions. As of 0450 GMT, three-month copper on the London Metal Exchange was steady at $8,547.50 per metric ton.
Supply Disruptions Influencing the Market
The market has been bolstered by disruptions in copper mine supply, particularly with lowered expectations for refined metal production. A notable decline in fees for processing raw materials in China’s spot market has been observed, largely due to anticipated supply reductions from First Quantum’s Cobre mine in Panama.
China’s Refined Copper Production
China, the world’s top copper smelter, reported lower-than-expected November refined copper production at 960,800 tons. The shortfall was attributed to tight supplies of copper blister, according to Shanghai Metals Market.
Macro Uncertainty and Market Cautiousness
However, broader macroeconomic uncertainties, including awaiting the Bank of Japan’s monetary decision, have tempered gains in metal prices. Additionally, the stability of the dollar index, after comments from the New York Federal Reserve president, has added to market cautiousness.
Impact of the Dollar on Metal Prices
A stronger dollar generally makes purchasing commodities priced in the greenback more expensive, affecting metal prices.
Shanghai Futures Exchange and Other Metals
On the Shanghai Futures Exchange, the most-traded January copper contract dipped slightly by 0.1% to 68,640 yuan ($9,628.28) per ton. In other metals, LME aluminium was steady at $2,248.50 a ton, while nickel, zinc, lead, and tin experienced varying degrees of movement.
SHFE Metals Performance
On the SHFE, aluminium saw a 1% increase, while nickel, zinc, lead, and tin showed mixed performances.