London copper prices saw a slight decline on Monday, as market sentiment remained clouded by uncertainty surrounding any potential stimulus measures from China’s upcoming economic conference.
The three-month copper contract on the London Metal Exchange (LME) dropped by 0.5%, settling at $9,078.50 per metric ton by 0409 GMT. In contrast, the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) edged up by 0.2%, reaching 74,670 yuan ($10,259.83).
The focus of the market is now on China’s Central Economic Work Conference, scheduled later this month, where the country’s leadership will outline its economic growth targets. However, investor expectations have been dampened by the absence of aggressive fiscal stimulus measures to bolster China’s struggling economy.
“Any signals for increased monetary or fiscal stimulus would be welcomed, though markets have largely adopted a default stance of disappointment over China’s stimulus efforts thus far,” said Natalie Scott-Gray, Senior Metals Analyst for EMEA & Asia at StoneX.
In other metals, the LME saw a broad decline, with aluminium falling 0.6% to $2,588.50 per ton, zinc slipping 0.2% to $3,067, lead dropping 0.4% to $2,063.50, and nickel easing 0.2% to $16,015. Meanwhile, tin saw a modest increase, rising 0.2% to $29,195.
On the SHFE, aluminium and zinc both posted losses, with aluminium down 0.5% at 20,315 yuan per ton and zinc dropping 0.7% to 25,415 yuan. Lead also fell 0.7% to 17,625 yuan, while tin gained 0.2% to 244,220 yuan, and nickel rose 1.3% to 126,900 yuan.
The overall market sentiment remains cautious as traders await clearer signals from China’s economic policymakers.
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