BENGALURU (Nov 19): Copper prices drifted higher on Tuesday, as the dollar rally took a breather, although concerns over China demand and potential US tariffs continued to weigh on the market.

Three-month copper on the London Metal Exchange (LME) rose 0.5% to US$9,114.50 (RM40,695) per metric tonne by 0320 GMT. The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) gained 0.6% to 74,250 yuan (US$10,266.44) a tonne.

The US dollar pulled back, as traders locked in profit after a rally that lifted the currency to a one-year high. A weaker dollar makes greenback-priced metals cheaper for other currency holders.

Meanwhile, top metals consumer China experienced slowing economic growth. The government has been implementing supportive policies to revive the economy, but these measures have so far failed to boost investor confidence.

US President-elect Donald Trump has pledged to end China's most-favoured-nation trading status and impose tariffs on Chinese imports in excess of 60% — much higher than those imposed during his first term.

"Most factors continue to be bearish for the copper market. LME copper prices will likely trade between US$8,900 and US$9,200 in the next six weeks," Ed Meir, consultant at brokerage Marex said.

"For next year, I see US$8,000 on the downside, and US$10,500 on the upside."

Last week, China’s finance ministry said it would reduce or cancel export tax rebates for aluminium and copper products.

LME aluminium rose 0.7% to US$2,626, nickel steadied at US$15,730, zinc added 0.6% to US$2,968.5, lead was up 0.4% at US$1,998, and tin firmed 0.8% at US$29,260.

SHFE aluminium was flat at 20,550 yuan a tonne, while nickel rose 0.5% to 124,530 yuan. Tin advanced 1% to 243,080 yuan; lead was up 0.2% to 16,770 yuan, and zinc added 0.9% at 24,775 yuan.

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