On Tuesday Copper prices fell on the London Metal Exchange after hitting an all-time peak the day before. The three-month contract shed 0.8%, settling at $11,163 per metric ton around that level. The pullback reflects a firmer dollar, a broad risk-off tone, and profit-taking in a tougher financial backdrop.
Despite this brief setback, copper is still up about 27% since the start of the year, supported by concerns over a potential supply squeeze. The day was marked by investor caution in an environment that was marked by weaker cryptocurrencies and large bond sales. The strength of the dollar, notably against the yen, after a successful Japanese auction, also weighed on dollar-denominated commodity prices.
Analysts view this retreat as temporary. According to Ole Hansen (Saxo Bank), as long as copper stays above $11,000, the uptrend remains intact with market prospects tight into 2026. In parallel, copper inflows are moving toward the United States, taking advantage of price gaps between the Comex and the LME. The market is also watching a decision by Chinese smelters to cut refined copper production by 10% next year, which would heighten the global supply squeeze.
In the Shanghai market, the most-active contract edged up 0.1% to 88,920 yuan per ton (about $12,575), after hitting an intraday record. Other base metals also fell: aluminum down 1%, zinc 1.2%, nickel 0.8%, lead 0.3% and tin 0.4%, illustrating a clear move back toward caution across the entire base metals complex.
