METALS-Copper edges higher on Chinese economic support pledge
Updates prices at 1525 GMT, adds news on Indonesia nickel
By Eric Onstad
LONDON, Jan 3 (Reuters) - Copper prices held in positive territory on Friday after China pledged more support for its ailing economy, though gains were capped by uncertainty surrounding the threat of U.S. tariffs on the world's biggest metal consumer.
Three-month copper CMCU3 on the London Metal Exchange (LME) added 0.5% to $8,845 a metric ton by 1515 GMT, holding above the $8,757 five-month low touched on Tuesday.
China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planning official said on Friday.
"The Chinese news is keeping our head above water, but we're facing an interesting year with the tariffs and the market trying to work out what kind of impact they may have on prices," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
U.S. President-elect Donald Trump has said he will impose tariffs of 60% on Chinese imports.
The potential tariffs and disappointment about the level of stimulus Beijing has provided to boost flagging economic growth has weighed on copper prices, which have slid 13% since hitting a four-month peak of $10,158 on Sept. 30.
The dollar index .DXY eased on Friday, retreating from a two-year high on Thursday, but was poised for its strongest weekly performance in more than a month.
A weaker U.S. currency makes it less expensive for holders of other currencies to buy dollar-priced commodities.
LME nickel CMNI3 rose 0.3% to $15,125. It had sunk to its weakest since October 2020 after top producer Indonesia said it was reviewing its annual nickel ore mining quota to try to prevent further price falls.
Among other metals, LME aluminium CMAl3 fell 1.3% to $2,496.50 a ton and zinc CMZN3 dropped 1.2% to $2,892, both having hit seven-week lows.
Lead CMPB3 eased 0.4% to $1,926 after touching a five-month low, while tin CMSN3 gained 1.6% to $29,010.
For the top stories in metals and other news, click TOP/MTL
($1 = 7.2998 Chinese yuan renminbi)
(Reporting by Eric Onstad
Editing by David Goodman and Barbara Lewis)
((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net/))
For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C
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