LONDON: Copper prices recoiled from a five-month peak on Friday, as disappointing loans data from top metals consumer China and concerns around US tariffs dampened buying activity.
Benchmark three-month copper on the London Metals Exchange was little changed at $9,786 a metric ton by 1700 GMT, pulling back from $9,850, its highest since October 9.
Prices retreated after new bank lending in China fell more than expected in February from a record high in the previous month. “It doesn’t really give confidence that China has got things under control in terms of stimulus and activity in the country, so that’s going to be negative for the copper price,” said Nitesh Shah, commodity strategist at WisdomTree.
“Also, Dr. Copper will always be very sensitive to growth concerns elsewhere in the world. I think the tariffs are creating those concerns,” he added.
Copper has pulled back and forth between worries that demand will suffer if growth tapers off, and buying that has banked on the assumption that tariffs would force US consumers to pay more for the metal. LME copper had risen for three consecutive sessions, bringing year-to-date gains to 12%.
Most active US Comex May copper futures were down 0.7% at $4.89 a lb after hitting $4.96, their strongest since May last year.
The premium of Comex copper over LME was $1,012 a ton. Tin prices remained elevated after Alphamin Resources halted operations at its Bissie tin mine in the Democratic Republic of Congo. On Thursday, LME futures had rocketed to their highest since 2022.
“Bisie tin mine is the world’s third-largest tin mine, contributing to 6% of the world’s tin ores in 2024,” Wang Weiwei, an analyst at Yide Futures, said in a note.
Prices of tin on the Shanghai Futures Exchange jumped 8.6% on Friday after hitting the upper limit of 10% in Asia morning trade. LME tin was 1.7% lower at $35,305 a ton after hitting $37,100, its highest since June 2022.
LME aluminium eased 0.7% to $2,683 a ton and lead slipped 0.2% to $2,067.50 while nickel added 0.1% to $16,515 and zinc rose 0.3% to $2,969.
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