Copper prices fell on Wednesday, staying below a key level of $10,000 a metric ton, as weak physical demand in top consumer China weighed on the market after a recent red-hot rally.
Three-month copper on the London Metal Exchange fell 0.1% to $9,937.50 per metric ton by 0220 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange dropped 2% to 80,440 yuan ($11,102.06) a ton.
Copper prices surged to record highs in late May, with LME copper hitting $11,104.50 and SHFE copper climbing to 88,940 yuan, partly due to funds betting on the metal’s use in the green energy sectors and a potential shortage.
However, the high and volatile futures prices prompted some physical copper users move to the sidelines and wait for the market to stabilise.
Copper stocks in warehouses tracked by SHFE were last at 321,695 tons, the highest since April 2020.
LME inventories of copper have also been trickling up, to 118,950 tons, the highest since April 24.
Copper dips below $10,000 as consolidation continues
LME aluminium dropped 0.8% to $2,643 a ton, nickel fell 0.6% to $18,950, zinc shed 0.5% to $2,919.50, tin eased 0.2% to 3$31,880, while lead was almost unchanged at $2,242.50.
SHFE aluminium eased 0.3% to 21,225 yuan a ton, nickel fell 2.1% to 143,340 yuan, lead declined 1.2% to 18,755 yuan, tin dropped 1.9% to 262,290 yuan and zinc edged down 0.7% to 24,135 yuan.
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