Copper and other base metals fall on profit-taking

LONDON: Copper prices fell on Friday, pressured by a stronger dollar and profit-taking as some investors locked in gains after the previous session’s record high.

Benchmark three-month copper on the London Metal Exchange dropped 2.2% to $13,319.50 a metric ton by 1120 GMT but held above its 21-day moving average, which provides support at $13,020.

Copper is up 7% this month, having hit a record high of $14,527.50 as speculators extended their buying spree on Thursday, driving the LME’s index of six base metals contracts to its own record high.

Copper’s record-breaking start to the year cannot be justified by market fundamentals, Stonex analyst Natalie Scott-Gray said in a note. Copper above $13,000 a ton is unsustainable throughout 2026, she said.

In top metals consumer China, the fall in copper prices lifted the Yangshan premium by 17% to $27 a ton, still historically low for a metric that reflects Chinese appetite for imported copper. The premium hit $20 this week for its lowest since mid-2024.

The selloff in base metals was given momentum by a stronger dollar. A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.

Friday’s volatility coincided with a one-hour delay to the start of trading at the LME electronic platform because of technical problems.

However, LME base metals held up relatively well compared with precious metals, where silver and platinum registered falls in double-digit percentages.

In other LME metals, aluminium fell 2.4% to $3,142 a ton, zinc dropped 1.2% to $3,372, lead shed 0.4% to $2,005.50 and tin slid 3.7% to $52,655 while nickel lost 3.2% to $17,770.