Copper slips further from four-week high on US president-elect’s remarks

LONDON — Copper slipped on Wednesday after US presidentelect Donald J. Trump gave little guidance on new infrastructure spending at a press conference in New York, disappointing some who had hoped for a clearer view on policy.

The metal, used in construction, surged more than 10% in the month following Mr. Trump’s election to the US presidency on Nov. 8, as his pledge to boost spending unleashed a wave of investment in industrial commodities.

Three- month copper on the London Metal Exchange (LME) closed down 0.80% at $5,714 a ton on Wednesday, off an earlier peak of $5,788.50, its highest since Dec. 13.

“I think the markets were hoping for more, so they were disappointed,” Societe Generale Analyst Robin Bhar said.

“Copper is now down almost $50 on the day,” Mr. Bhar noted.

“If ( Mr. Trump) isn’t going to bolster growth through fiscal spending, then that’s got to be slightly disappointing compared to the hopes that were being built up post his election win,” he added.

“It’s still hope over reality at the moment.”

In his first formal news conference since July, Mr. Trump blasted two news organizations for reporting unsubstantiated claims about his ties to Moscow, but praised other reporters for holding back.

The dollar and equities both lost ground after his initial remarks, before recovering some poise as the news conference went on.

Copper remains up more than 3% so far this year after China and global economic data fueled expectations for firm demand in 2017.

“Manufacturing indicators still look good, which could suggest that the global economy has got off to a good start in 2017,” Danske Bank Analyst Jens Pedersen said. “That is supporting prices.” Further underpinning the metal are rising concerns over supply disruptions. Workers at Chile’s Escondida copper mine — the world’s biggest — have already rejected a wage offer from BHP Billiton, raising the prospect of a strike.

LME zinc closed at $ 2,699 a ton, down 0.80%, while lead ended the day down 2.60% at $2,134 a ton, having rallied nearly 6% in the last two sessions.

LME aluminum closed up 0.50% at $1,758 a ton, while tin was little changed at $21,150. Nickel closed down 4.10% at $10,180. —