SHANGHAI- Copper prices on the London Metals Exchange (LME) slipped from a five-month high on Tuesday, though China’s stimulus plan and a weak US dollar limited the losses.
Benchmark three-month copper on the LME slid from a five-month high and was down 0.1 percent at $9,850 a metric ton.
The US dollar wallowed near a five-month trough, as investors grappled with the potential economic impact of growing global trade tensions.
A softer dollar makes greenback-priced commodities more affordable for buyers using other currencies.
“China vowed to revive consumption in the world’s largest copper consuming market. The government unveiled a special action plan, containing 30 measures aimed at boosting spending by increasing people’s incomes,” ANZ Research said in a note.
China’s State Council unveiled on Sunday a “special action plan” to boost domestic consumption, featuring measures including increasing residents’ income and establishing a childcare subsidy scheme.
Meanwhile, the draft EU plan reveals the European Commission’s consideration of potential import restrictions on aluminum, prompted by apprehensions that the metals tariffs imposed by the US ‘ Donald Trump administration could trigger a surge of aluminum redirected towards Europe.
LME aluminum was down 0.3 percent at $2,678 a ton, lead slid 0.1 percent to $2,080, zinc lost 0.6 percent to $2,939.5, tin fell 0.5 percent to $35,030 and nickel dropped 1.0 percent to $16,265.
