Copper Prices Stabilize After Sharp Sell-Off Amid China Demand Concerns
Copper prices steadied on Tuesday after a sharp sell-off in the previous session, but concerns about demand in top metals consumer China and a strong dollar continued to weigh on sentiment.
The benchmark three-month copper price on the London Metal Exchange (LME) edged down 0.1% to $14,394 per metric ton by 0915 GMT. It lost 1.4% on Monday, hitting its lowest since September 17 due to weak Chinese industrial profits data.
Analyst Tom Price from Panmure Liberum noted that falling industrial metal prices are reflecting signs of deteriorating economic growth, with oil prices above $100 a barrel hurting activity everywhere. 'Copper is the only one that's holding up with some sort of upside risk,' Price said.
The LME copper stocks dipped by 875 tons to 251,350 tons, although only around half are available to the market. In contrast, COMEX inventories have risen for six straight days to over 700,000 tons in the US as investors await the possibility of an import tariff next year.