BENGALURU- London copper prices eased from a near two-week high on Wednesday as the US dollar regained some ground, while China demand concerns and tariff worries persisted.
Three-month copper on the London Metal Exchange (LME) fell 0.2 percent at $9,098 per metric ton after hitting its highest since Nov. 20 on Tuesday.
The US dollar recovered from a three-week low as traders pondered the chances of a Federal Reserve interest-rate cut this month and held its ground against other major rivals, making metals more expensive for holders of other currencies.
“A key uncertainty for the outlook for metals prices is around US trade policy,” said HSBC analysts.
“Any downside risk to China’s growth outlook from US policy raises the prospect of China delivering further domestic stimulus measures.”
President-elect Donald Trump has threatened to impose huge tariffs on Chinese imports. On Tuesday, Beijing banned exports of items related to gallium, germanium and antimony to the US a day after Washington’s latest crackdown on the country’s chip sector.
Traders are looking towards the Central Economic Work Conference this month in top consumer China for signs of further monetary or fiscal support. The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) rose 1 percent to 74,770 yuan ($10,274.56) a ton.
