HANOI- Base metals traded sideways on Tuesday as markets awaited a key meeting next week in China for more details on Beijing’s stimulus measures and the Nov. 5 US presidential election.
Three-month copper on the London Metal Exchange (LME) edged 0.2 percent higher at $9,557 per metric ton while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) was nearly flat at 76,670 yuan ($10,746.22) a ton.
China is the world’s biggest consumer of metals.
The country’s top legislative body will meet from Nov. 4-8, but so far there has been no mention on the agenda of the highly-anticipated debt and other fiscal measures.
“Shorter term view will be… aligned to macro such as Chinese stimulus and what kind of policies the US will enact,” said a trader, adding that the market is also being risk-averse ahead of the US presidential election next week.
“Although everyone keeps talking about copper concentrate shortage next year, it still is an issue of smelter over- capacity worldwide. Demand is sluggish longer-term,” the trader said, expecting $10,500 as a potential peak price in 2025.
Copper demand has been hurt by slowing growth globally, especially in China, although some consumption sectors have been strong, such as solar and wind energy.
