Singapore November 14 2024: Copper fell below $9,000 a ton for the first time in two months as the dollar extended gains made in the wake of the US election.
Futures on the London Metal Exchange have dropped about 7% since Thursday’s close. The election of Donald Trump to the US Presidency has spurred gains in the greenback as traders bet on tighter-for-longer Federal Reserve policy.
Trump has promised to raise tariffs and cut taxes, both of which may add to the inflationary pressure in the economy. The risks were underlined on Wednesday when an index of consumer prices showed its first acceleration on an annualized basis since March.
Copper has retreated since hitting a record high in May amid concerns about demand recovery in China, the world’s top metals consumer of the metal. Enthusiasm about Beijing’s pro-growth pivot has cooled as investors look for clearer signs that the government will roll out more policies — such as infrastructure investment — that will boost commodities demand.
Traders are watching the impact of China’s latest economic stimulus measures. Industrial output and retail sales in the world’s top metals consumer are expected to have grown at a faster pace in October than September, according to economists surveyed by Bloomberg. Those data are due Friday.
Copper declined 1.3% on the LME to $8,932 a ton at 10:43 a.m. in Singapore. Most other metals were lower, with zinc falling 1.8% and aluminum down 0.7%.
Iron ore futures fell 1.2% to $99.40 a ton.
