BEIJING: Copper prices fell on Friday, weighed down by rising concerns over demand prospects in top consumer China following downbeat data and a lack of benchmark rates cuts, but the metal was on track for a weekly gain on tight supply expectation this year.
The most-traded copper contract on the Shanghai Futures Exchange dropped 0.97% to 102,100 yuan ($14,655.43) per metric ton by 0226 GMT. Benchmark three-month copper on the London Metal Exchange dipped 0.58% to $13,029.5 per ton.
Both benchmarks have risen around 0.5% so far this week, though a firmer dollar limited the upside.
Copper prices have been supported by mine disruptions, worries about supply deficits and the flow of metal to the United States ahead of potential tariffs tightening supply elsewhere.
Shanghai and London benchmarks have gained 4.2% and 7.6%, respectively, this month following rises of 34% and 42% in 2025.
But China’s weaker loan data and plans to cut sector-specific interest rates instead of benchmark policy rates have raised concerns over the demand outlook.
China’s 2025 new bank loans slumped to a seven-year low, highlighting weak borrowing needs amid a prolonged property downturn.
Also, the central bank announced on Thursday cuts to sector-specific interest rates to provide an early boost to the economy, a move that tends to have a limited impact on growth.
China’s economic growth is likely to slow to 4.5% in 2026 and maintain the same pace in 2027, a Reuters poll showed.
Among other SHFE metals, aluminium lost 0.84%, nickel fell 1.6%, lead edged down 0.14%, and zinc shed 0.84%.
Shanghai tin tumbled by more than 6% following moves from the bourse to rein in a sharp price rally by raising trading price limits and margins and limiting the maximum number of intraday open positions at 800 lots.
Among other LME metals, aluminium shed 0.39%, nickel fell 1.64%, lead slid 0.69%, zinc slipped 1.19%, while tin added 0.32%.