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 1.5% 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.
Three-month copper on the London Metal Exchange was up 0.1% at $9,455.50 a tonne by 1010 GMT, recovering after touching an intraday low of $9,385.
"Days like today when there is no major news flow, some people are saying copper and aluminium are both looking quite pricey, so why not take some profits out of this stellar run that we've had," he said.
While benchmark copper on the London Metal Exchange traded up 1.6% at $8,918.5 a tonne in official rings, prices of the metal used as a gauge of economic health by investors are down about 7% since hitting 9-1/2-year highs of $9,617 last month.
"We are in a consolidation period, not necessarily because of fundamentals," said Julius Baer analyst Carsten Menke.
Mitsui Mining and Mitsui & Co said last year they had agreed to sell their stakes in the Caserones copper mine in Chile to Japan's JX Nippon Mining & Metals Corp, the metals unit of Eneos Holdings Inc.
We have decided to use our resources for other growing areas such as engineered materials and development of new products.
With Chinese equities up around 2.5%, the US Dow Jones Index at record levels and European stocks reaching a one-year high, benchmark copper on the London Metal Exchange (LME) was up 2.1% at $9,048 a tonne in official trading.
Copper, used in power and construction, reached $9,617 a tonne in February as analysts warned that demand from China, green energy and electrification will outstrip supply.
The large decline in Chinese smelter activity was well anticipated due to the holiday period and should recover fairly quickly.
If the improvements seen in most regions continue through March, combined with a resumption in Chinese activity, the next month could be the first time in many months where activity level trends are aligned across all major regions.