BEIJING, Jan 5 (Reuters): Copper prices edged up on Friday, underpinned by supply concerns of the metal, which offset shifting investor expectations of the U.S. Federal Reserve's interest rate cuts.
Three-month copper on the London Metal Exchange CMCU3 rose 0.2% to $8,482 per metric ton by 0421 GMT. The contract is set to end the week little changed, after gaining 2.2% in 2023.
The most-traded February copper contract on the Shanghai Futures Exchange SCFcv1 nudged 0.1% up at 68,470 yuan ($9,552.04) per ton.
Copper will hit an average of $9,000 and $10,000 per ton in 2024 and 2025 as a result of tightening supply, analysts at CITIC Securities said in a note.
With declining growth from mine output, the global refined market will turn to a growing deficit from 2025 to 2027, from a 170,000 tons surplus this year, they added.
In top consumer China, copper stocks remained thin, partly contributing to a premium of spot buying at around 200 yuan per ton this week.
However, waning risk appetite after minutes from the Fed's December's policy meeting showed most policymakers agreed borrowing costs need to remain high for some time pressured prices.
The market's hopes that the Fed will start easing policy as early as March had boosted copper prices, often seen as an economic bellwether.
Meanwhile, the dollar index =USD dipped on Friday, making it less expensive to buy the greenback-priced metal.
LME aluminium CMAL3was stableat $2,282 a ton, zinc CMZN3 added 0.2% to $2,542.50, nickel CMNI3 ticked 0.3% higher to $16,110, tin CMSN3 nudged 0.1% up to $24,865 and lead CMPB3 increased 0.6% to $2,053.
SHFE aluminium SAFcv1 shed 0.3% to 19,225 yuan a ton, nickel SNIcv1 declined 1.5% to 124,350 yuan, tin SSNcv1 declined 1.4% at 208,860 yuan and zinc SZNcv1 lost 0.9% to 21,235 yuan, while lead SPBcv1 gained 0.7% to 16,090 yuan.
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