Market Outlook: Copper Rises as Dollar's Surge Pauses, Demand Concerns Weighing in China

As copper prices rise following a pause in the dollar's surge, concerns about China's demand and potential U.S. tariffs continue to exert pressure on the market.

Three-month copper on the London Metal Exchange (LME) increased by 0.5% to $9,114.5 per ton at 06:20 GMT. Meanwhile, the December copper contract on the Shanghai Futures Exchange (SHFE) gained 0.6%, reaching 74,250 yuan per ton ($10,266.44).

The U.S. dollar pulled back as traders locked in profits following a rally that had pushed it to a one-year high.

At the same time, China has experienced slowing economic growth. The government is implementing supportive policies to revive the economy, but these measures have so far failed to boost investor confidence.

U.S. President-elect Donald Trump has pledged to end China's favored nation trade status and impose tariffs exceeding 60% on goods imported from China. This rate is significantly higher than those enforced during Trump's first term.

Analysts predict that copper prices on the LME will likely trade between $8,900 and $9,200 over the next six weeks, with downward expectations of $8,000 and upward expectations of $10,500 for next year.

Last week, China's Ministry of Finance announced plans to reduce or eliminate export tax rebates for aluminum and copper products.

On the LME, aluminum traded up by 0.7% at $2,626 per ton, nickel at $15,730 per ton, zinc increased by 0.6% to $2,968.5 per ton, lead rose by 0.4% to $1,998 per ton, and tin was up by 0.8% at $29,260 per ton.