Copper Prices Under Pressure Amid Strong Dollar and Uncertain Demand Outlook

Copper prices fell on Wednesday on the London Metal Exchange (LME), weighed down by a stronger dollar and technical factors. The market is awaiting more clarity on demand prospects in China, the world's top metals consumer, as well as possible trade tariffs.

Three-month copper on the LME declined by 0.2% to $9,093 per metric ton by 1114 GMT. This followed a 1.3% gain on Tuesday, which saw copper close at its highest level since November 12. However, the metal remains within a wide range, with investors watching for developments on potential import tariffs threatened by U.S. President-elect Donald Trump and possible retaliatory measures from China.

"Copper has settled into a wide $8,900-$9,200 range, which it is likely to stay within while we wait for more information," said Ole Hansen, head of commodity strategy at Saxo Bank. "Speculative length remains weak, leaving the market exposed to an upside surprise move within the range, as we saw on Tuesday when a technical break gave the metal some upside momentum that is being partly reversed today."

On the supply side, Rio Tinto forecast higher copper production in its 2025 financial year, driven by an expected increase in output from its operations in Mongolia. Meanwhile, Freeport Indonesia stated that its Manyar smelter in East Java would ramp up in the third quarter of 2025 after being halted due to a fire.

In other metals, aluminium rose by 0.4% to $2,618.50 per ton, while zinc edged up by 0.2% to $3,098. Lead dropped by 0.4% to $2,070, tin gained 0.1% to $28,830, and nickel increased by 0.7% to $16,115. Both aluminium and nickel reached a one-week high.