LONDON: Copper made modest gains on Thursday as the dollar pulled back from near 14-year highs but the rise was capped by concerns that the metal used in construction and power had risen too far in recent sessions.
Benchmark copper added 0.3 percent to $5,450 per tonne by 1120 GMT. The metal on Nov. 11 touched its highest since June 2015 at $6,025.50 per tonne.
The industrial metal has fallen 10 percent since last week's surge that was stoked by expectations of higher US infrastructure spending following Republican Donald Trump's upset election victory.
"The copper surge has come off since last week and has been volatile since that, we have run out of news to keep it going," said AME Mineral Economics director Michael Dixon.
"It was a case of overdone exuberance because little has changed in the world of copper in the last three weeks in terms of outlook. There is a reasonable amount of copper still around for the next year or two."
The dollar index slipped from 13-1/2 year highs, easing pressure on commodities priced in the greenback. A stronger dollar makes commodities priced in it more expensive for buyers using other currencies.
Executives at some of the world's major copper producers and traders said on Wednesday the global copper market will be oversupplied for at least two years, casting doubt on the chances of a prolonged rally in prices.
With China accounting for half of global copper consumption, investors hoping for a splurge in US infrastructure spending by Trump may end up disappointed given that the plans, even if successful, would add only modestly to world demand.
In supply news, Anglo American said it suspended its Los Broncos copper mine in Chile after protesters seized installations on Wednesday. The mine produced 402,000 tonnes of copper last year.
Market participants are watching US Federal Reserve Chair Janet Yellen's congressional testimony at 1500 GMT where she might raise concerns about the dollar's surge.
Elsewhere, zinc fell back further from five-year highs hit on Wednesday, down 0.3 percent to $2,532.50 per tonne.
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