Copper futures slipped toward $4 per pound on Thursday, reaching their lowest level in three months, as ongoing demand concerns and a stronger US dollar weighed on the commodity markets.
Copper prices drop to three-month low
Investor sentiment was dampened by Beijing's latest economic support measures, which fell short of expectations despite new tax incentives for property transactions announced by the finance ministry on Wednesday.
Eagle Metal International, a leading copper importer in China, indicated that more robust economic stimulus is necessary to drive copper demand in the region.
Pressures from potential US tariffs
Further adding to the pressure, concerns have intensified over potential additional tariffs on China under the incoming Trump administration, which could negatively impact future copper demand.
Meanwhile, the US dollar continued to strengthen on the back of "Trump trades," with markets anticipating strong economic growth and higher inflation under the new administration, potentially limiting the Federal Reserve's flexibility to lower interest rates.
