LONDON: Copper prices eased on Thursday as some traders and funds took profits on long positions ahead of jobs data that could determine the direction of U.S. interest rates and the dollar.
Benchmark copper on the London Metal Exchange was down 0.2% at $9,994 a metric ton by 1032 GMT, having touched a three-month high of $10,020.50 on Wednesday.
Traders reported subdued volumes ahead of the monthly U.S. employment report for June. The data, due later on Thursday, is expected to show a slight rise in unemployment.
Weak growth numbers would raise worries about U.S. growth and potentially allow the Federal Reserve to cut interest rates, which would weigh on the dollar.
A weakening U.S. currency, making dollar-priced metals cheaper for buyers with other currencies, has buoyed industrial metals prices this year.
Another strong influence on copper prices has been a U.S. investigation into potential tariffs on imports of the metal used in the power and construction industries, which could create shortages and drive up prices on COMEX.
Copper gains as traders likely to continue shipping ahead of possible US tariffs
The COMEX copper premium of about $1,300 a ton over LME prices spurs traders and producers to divert metal to the U.S. from elsewhere.
“While U.S. copper imports have not yet been hit by a tariff … the market is still pricing in this risk,” said Panmure Liberum analyst Tom Price.
Much of the metal shipped to the United States has come from LME-registered warehouses. Stocks in the LME system have dropped 65% to 94,325 tons since the 2025 peak in mid-February.
Cancelled warrants, or metal earmarked to leave LME warehouses, at 34% indicate that another 31,900 tons are waiting to be shipped out.
However, recent data shows the premium, or backwardation, for the cash copper contract over the three-month forward is starting to attract metal back to the LME.
In the port of Gwangyang in South Korea, copper stocks in LME warehouses are up by 2,250 tons this week. In Kaohsiung, Taiwan, they are up by 1,250 tons.
In other metals, aluminium slipped 0.4% to $2,609 a ton, zinc eased 0.3% to $2,749, lead was up 0.4% at $2,068 while tin retreated 0.2% to $33,655 and nickel advanced by 0.7% to $15,405.
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