Copper on the London Metal Exchange (LME) was set for its biggest weekly drop since September 2020 after a sizzling rally with near 40% gains since the start of the year to a record peak of $10,747.50 last week.
Three-month LME copper had slid 1.6% to a two-week low of $9,884 a tonne, down 3.5% on the week.
Copper on the London Metal Exchange (LME) was set for its biggest weekly drop since January after a sizzling rally with near 40% gains since the start of the year to a record peak of $10,747.50 last week.
Benchmark copper on the London Metal Exchange traded up 1% at $10,104 a tonne in official rings. However, prices of the metal used widely in power and construction are down 6% since hitting a record $10,747.50 a tonne earlier in May.
"There's been some buying on the back of a lower dollar and the possibility of a strike at Escondida (copper mine in Chile)," a copper trader said. "But the rally does seem to have to run out of steam."
An overhaul of Chile's market-orientated constitution is underway and the country is debating whether to increase royalties on miners.
Cochilco said that increased speculation in the market was playing a role in bolstering copper, adding: "This could push the price to new highs in the short term."
The commission also predicted that copper production out of Chile would hit close to 5.8 million tonnes this year, a year-on-year increase of 1.8%, but below its previous forecast of just under 6 million tonnes.
Benchmark three-month copper on the London Metal Exchange (LME) shed 2.6% to $10,136 a tonne.
The metal, widely used in the power and construction industries, was on track for its biggest daily fall since February. Last week, copper hit a record of $10,747.50 a tonne and has jumped 32% so far this year.
Benchmark copper on the London Metal Exchange (LME) broke above the previous record high of $10,190 set in 2011 and had gained 2.3% to $10,325.
The most-traded June copper contract on the Shanghai Futures Exchange climbed as much as 2.7% to 74,950 yuan ($11,603) a tonne, its highest since May 2006 and only 1.6% below its record peak of 76,160 yuan.
Benchmark copper on the London Metal Exchange was up 0.1% at $9,895 a tonne.
Copper prices dipped initially on Friday, but then joined gains in other risky assets such as world stocks, which held near record highs, lifted by strong US data and the Federal Reserve's vow to support the economy.
Benchmark copper on the London Metal Exchange traded up 1.5% at $9,894 a tonne in official rings, a gain of 27% this year.
"Chilean port workers called a strike over pension-related issues. They are being supported by the mining unions. There is no indication of supply disruptions, but copper prices have rallied," said Julius Baer analyst Carsten Menke.
Benchmark aluminium on the London Metal Exchange was up 1% at $2,387 a tonne at 1121 GMT. Prices of the metal used widely in the transport, construction and packaging industries earlier touched $2,389, a gain of more than 20% since January.
Electricity, much of it from coal in China, can account for 30%-40% of aluminium smelting costs.