NEW DELHI- London copper prices climbed to a nearly one-month high on Wednesday, as markets drew support from top consumer China’s surprise shift in its monetary policy stance toward more easing and a proactive fiscal policy to propel growth.
Three-month copper on the London Metal Exchange (LME) was up 0.8 percent at $9,293.5 per metric ton. The contract briefly touched $9,314 per metric ton, its highest level since Nov. 12.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) rose 0.5 percent to 75,760 yuan ($10,456.87) a ton.
China will adopt an “appropriately loose” monetary policy next year, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, the Politburo was quoted as saying on Monday.
The copper market, which is used in power and construction, is awaiting further support for China’s economy, especially in the construction sector.
“Changes in fiscal or monetary policy typically take 2-3 quarters to translate into real-market impact. As a result, we do not expect to see a continuous improvement in the region until the second half of 2025,” Sucden Financial said in a note.
“Without clear signs of sustained recovery in the construction sector, it will be challenging for the market to establish a lasting upward trend.”
The focus is now on China’s Central Economic Work Conference meeting this week for more clarity on key targets and potential economy stimulus measures for next year.
