LONDON: Copper prices wilted on Friday as risk-off sentiment swept financial markets and investors took the opportunity to lock in profits after two days of rallying prices.
Three-month copper on the London Metal Exchange shed 0.7% to $9,921 a tonne in official open outcry trading after touching the $10,000 mark on Thursday.
“Copper and the rest of the metals sector are catching a bit of a chill today,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“We’re running into some profit taking following that strong run-up and it’s also because we’ve got risk-off sentiment in the stock market.” Stock markets dropped after a late slump in the United States as fears about the pace of monetary policy tightening and weaker-than-expected earnings hit investor confidence.
But copper, often used as a gauge of global economic health, was on track for a weekly gain of more than 2%, having been supported by supply concerns, low inventories at exchange warehouses, and a series of monetary easing measures in top consumer China. Copper’s most-traded March contract on the Shanghai Futures Exchange ended daytime trading 0.6% higher at 71,290 yuan ($11,246.61) a tonne.
Shanghai nickel rose as much as 5.2% to a record 179,780 yuan a tonne, but LME nickel slipped 0.3% in official activity to $23,715 a tonne. It touched $24,435 in the previous session, its highest since August 2011.
LME aluminium shed 1.6% to $3,060 a tonne, zinc eased 0.2% to $3,641 and tin slipped 0.1% to $43,450, but lead rose 1.3% to $2,381.
LME Chief Executive Matt Chamberlain will step down in April and take the top job at digital asset custody services provider Komainu.
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