LONDON: Copper prices retreated from the highest in nearly five months on Thursday as investors locked in profits from a rally ahead of year-end.
Aluminium also pulled back after a fresh build-up of inventories, highlighting potential oversupply. Three-month copper on the London Metal Exchange fell 0.7% to $8,629 per metric ton in official open-outcry trading, erasing gains after touching $8,716, its highest since Aug. 1.
“Copper has gone a long way over the past few sessions, so it looks like a bit of profit taking. There are still a few worries about Chinese growth and the property sector,” said broker Robert Montefusco at Sucden Financial.
LME copper has gained 10% since hitting an 11-month low of $7,856 on Oct. 23. The losses were cushioned by a weaker dollar index and gains in equity markets amid optimism about expected US interest rate cuts next year, Montefusco added.
A weaker dollar makes greenback-priced metals cheaper for buyers using other currencies. “The short-term macro sentiment is bullish, and the low inventory on the spot side will last longer than expected, which will easily support the price,” said Huatai Futures in a report. Copper inventories on the Shanghai Futures Exchange were last at 165,050 tons, the lowest since Sept. 25.
LME aluminium lost 0.9% in official activity to $2,366 a ton after a rise in LME inventories, which hit six-month highs, having gained 24% over the past two weeks.
Aluminium prices touched an eight-month peak on Wednesday on technical buying and supply concerns. LME nickel gave up 0.7% to $16,825 a ton after LME inventories rose to the highest levels since July 2022.
LME zinc slipped 0.3% to $2,635 a ton, tin dipped 0.1% to $25,625 while lead eased 0.2% to $2,082.50. On a yearly basis, LME nickel was headed for its steepest loss since 2008, down 43.4% so far this year, on oversupply pressure.
Source: Brecorder
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