Investing.com - Copper prices traded near a one-week high on Wednesday, after Chinese metal producers pledged to cut production of the red metal to combat falling prices.
Copper for March delivery on the Comex division of the New York Mercantile Exchange dipped 0.2 cents, or 0.08%, to trade at $2.072 a pound during morning hours in London. It earlier rose to $2.085, the highest since November 27. Meanwhile, three-month copper on the London Metal Exchange inched up 0.1% to $4612.25 a metric ton.
On Tuesday, copper rallied 2.3 cents, or 1.12%, as the U.S. dollar pulled back from eight-and-a-half-month highs.
Ten major copper smelters in China said they will scale back production by 350,000 metric tons next year. The group also called on the government to buy metal for its strategic stockpile.
Gains were limited as some market players were disappointed by the size of supply cuts, which was seen as too small to make a significant impact on an extremely oversupplied market.
Meanwhile, a pair of disappointing manufacturing reports released Tuesday underlined concerns over the health of China's economy.
The downbeat data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Copper is down almost 30% since May as expectations of higher interest rates in the U.S. and slower global economic growth, especially in China, weighed.
Elsewhere in metals trading, gold held near six-year lows on Wednesday, as investors looked ahead to key U.S. data later in the day for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.
The U.S. was to release the ADP jobs report for November at 8:15AM Eastern Time Wednesday. Market players will also pay close attention to a speech by Fed Chair Janet Yellen later in the day.
Traders are also focusing on Friday's U.S. nonfarm payrolls report, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
The outcome of Thursday’s European Central Bank meeting will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.