LONDON- Copper prices rose modestly on Friday, supported by emerging signals of firmer demand in top metals consumer China but gains were capped by uncertainty over potential US tariffs.
Three-month copper on the London Metal Exchange (LME) was up 0.1 percent at $9,014 a metric ton and posted a 5.3 percent decline for November.
US Comex copper futures gained 0.4 percent to $4.11 a lb.
“The fundamentals are firm at the moment, it’s just that we don’t know what’s down the road in terms of tariffs, so markets are cautious to move in a decisive manner,” said WisdomTree commodity strategist Nitesh Shah.
US President-elect Donald Trump has threatened to impose tariffs on imports, which would hurt economic growth and metals consumption, especially in China.
The most traded January copper contract on the Shanghai Futures Exchange (SHFE) closed almost flat at 73,830 yuan ($10,216.28) a ton, posting a second straight monthly loss.
“China is in wait-and-see mode until they know how bad the tariffs are going to be, before deploying some of its dry powder in terms of fiscal stimulus,” Shah added.
LME copper has shed 11 percent since touching a four-month peak of $10,158 on Sept. 30 as investors sold off bullish positions on potential tariffs and disappointment over the lack of aggressive Chinese stimulus.
Some positive signs, however, have been emerging in China, including SHFE inventories that have tumbled by two thirds since early June to 108,775 tons, their lowest since Feb. 5.
Investors are also hoping that coming data will show China’s stimulus is starting to filter through. Analysts in Reuters polls expected that China’s factory activity expanded modestly for a second consecutive month in November, while home prices are expected to stabilize in 2026 after slower falls this year and next.
