Copper slips from three-month peak on Chinese data

Zawya

3 days ago

Copper prices slipped on Friday from a three-month peak after weak data in top metals consumer China and some profit-taking, but losses were modest due to underlying tightness and buoyant premiums.
London Metal Exchange benchmark three-month copper fell 0.5% to $9,855 per metric ton in official open-outcry trading, having hit $9,917, its highest since March 27. It was up 2.2% for the week.
Data showed that China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed.
"Falling industrial profits is not a good sign for the industrial sector in general, but it's not a straight line translation to lower copper demand," said Nitesh Shah, commodity strategist at WisdomTree.
"What we see is that the copper-intensive stories are probably still very much in full force at the moment."
Spending by China on its power grid, for example, has been strong, Shah added. It hit a record last year and was up 19% in the first five months of 2025, Citi said in a note.
Copper on the Shanghai Futures Exchange rose 1.5% to 79,920 yuan ($11,148.93), having hit 80,060 yuan, its highest since March 31. It was up 2% for the week.
Expectations that the United States will impose tariffs on copper imports have pulled metal to that country, leaving shortages elsewhere.
Data on Friday showed that inventories in warehouses monitored by ShFE slid 19% from the previous week to 81,550 tons, down 70% over the past four months.
LME copper stocks have tumbled 66% in the same period, sending premiums for nearby contracts soaring.
The premium for the LME cash copper contract over the three-month contract retreated on Friday to $250 a ton from $320 a ton on Thursday, its highest since November 2021.
U.S. Comex copper futures fell 1.2% to $5.06 a lb, bringing the premium of Comex over LME copper to $1,311 a ton, slightly weaker than on Thursday.
Among other metals, LME aluminium dipped 0.1% to $2,580 a ton, zinc shed 0.5% to $2,755, lead fell 0.3% to $2,033, nickel was little changed at $15,210 while tin rose 0.5% to $33,930.
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($1 = 7.1684 Chinese yuan)