Copper prices were broadly steady on Tuesday, hovering near record highs hit in the previous session, as supply constraints and bets of easing monetary policy in the U.S. and China buoyed prices.

The most active copper contract on Shanghai Futures Exchange closed daytime trade little changed at 93,740 yuan ($13,337.0) per metric ton as of 0727 GMT. It touched a record high of 94,470 yuan on Monday.

The benchmark three-month copper on the London Futures Exchange gained 0.2% to $11,944.0 a ton.

Reports on Monday said that President Donald Trump could name a new U.S. Federal Reserve Chair by early January, with markets pricing in two rate cuts for next year amid expectations of a more dovish policy stance.

In China, supply-side factors also provided support. The country’s top copper smelters will cut production by over 10% in 2026 to counter over-capacity in the industry that has increasingly distorted copper concentrate processing fees, according to a Chinese market information provider.

“The base metal complex fundamentals look very promising (as) China is likely to introduce a new round of interest rate cuts and is also looking to cut excess melting capacity for all base materials, which is very, very bullish,” said Kunal Shah, head of research at Nirmal Bang Commodities.

Among other SHFE base metals, nickel extended gains to a fifth straight session, rising 4.4% to 123,040 yuan a ton, a more than two-month high.

The London benchmark nickel also gained, up 1.2% to $15,460 a ton, its highest since October 10.

“LME copper looks to test $13,500/ton and aluminium is likely to (reach) $3200/t in the next six to nine months while zinc could test $3,200 after the next quarter,” Shah said.

In Shanghai, aluminium fell 0.3%, zinc was up 0.1%, lead was up 0.3%, and tin gained 0.5%.

Among other LME metals, aluminium nudged 0.1% higher, zinc was steady, lead added 0.3%, while tin gained 1.2%.
Source: Reuters