Copper, Aluminum, and Nickel Prices Edge Higher Amid Market Uncertainty
The London Metal Exchange (LME) saw refined copper closing at $9,068 per ton, up $4 or 0.04% on the official three-month goods price basis. Despite ongoing concerns about China's economic outlook, copper prices remained above the $9,000 mark, buoyed by hopes for government stimulus measures. LME copper stock levels, excluding canceled warrants, continued their 12-day streak of contraction, dropping to just under 260,000 tons, the lowest since early August.
China's copper treatment commission has been on the rise, with the refined copper spot treatment rate reaching $12.5 per ton. Meanwhile, mining giant Rio Tinto expects to produce up to 850,000 tons of copper next year. Canceled warrants accounted for 4.12% of the total LME copper stock on Wednesday.
Aluminum prices also showed a modest increase, rising by 0.52% or $13.5 per ton on the three-month goods basis. The broader trend of rising non-ferrous metal prices, fueled by expectations of economic stimulus from China, supported this rise. However, aluminum's gains were somewhat limited due to weakening product prices in China, with aluminum bar prices seeing a decline since mid-November on the QME trading basis. Canceled warrants represented 44.6% of the total aluminum stock at LME warehouses.
Nickel prices followed suit, with the three-month goods price increasing by $40 or 0.25%, ending at $16,025 per ton. This increase was linked to a rebound in the steel market, which bolstered demand for nickel. The volume of nickel on canceled warrants doubled over the last three days, totaling 17,880 tons.
