Copper slips on profit-taking after scaling fresh record high

LONDON: Copper prices eased after hitting a record high on Thursday as traders weighed whether the metal’s September rally has become overstretched after five sessions of gains driven by concerns over tightening inventories outside the United States.

Three-month copper on the London Metal Exchange fell 0.2% to $14,743 a metric ton by 0937 GMT after touching an all-time high of $14,875 earlier in the session.

Copper, widely used in power and construction, has gained 19% this year as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, stoking concerns over availability in traditional consuming regions.

“We may be starting to see a mismatch between short- and long-term drivers, raising the risk of a pullback as some of the near-term bullish forces begin to fade,” said Ole Hansen, head of commodity strategy at Saxo Bank.

The surge in LME prices has narrowed the premium of COMEX copper over the global benchmark and slowed daily inflows into COMEX warehouses, where stocks stand at 696,259 tons.

“Whether these inventories ultimately become stranded – or eventually return to the global market if no tariffs are introduced - may help determine whether current price levels are sustainable in the short term,” Hansen said.

Some indicators suggest the rally may be vulnerable to profit-taking: copper’s Relative Strength Index has been above 70 since Tuesday, signalling overbought conditions.

Meanwhile, the premium of the LME cash contract over the three-month benchmark has eased to $41 a ton from $436 in mid-August, indicating less acute physical tightness.

Still, Hansen said any correction would be unlikely to derail a longer-term bull market underpinned by constrained mine supply and bets on demand from AI data centres, electrification and the energy transition.

Among other LME metals, aluminium fell 0.3% to $3,346 a ton. The premium of the cash LME contract over the benchmark was at $16 per ton, compared with a $5 discount two weeks ago, signalling tighter nearby supply.

Zinc lost 1.2% to $4,002, lead eased 0.1% to $1,913, tin rose 0.2% to $55,350 and nickel was down 0.2% at $16,855.