LONDON: Copper prices fell on Wednesday, pressured by a stronger dollar and rising metal availability in exchange stockpiles while traders played down Chinese plans to expand strategic reserves.
Benchmark three-month copper on the London Metal Exchange was down 0.7% at $13,384.50 a metric ton by 1043 GMT. Copper has lost 8% since speculators extended their buying spree from gold and silver, driving copper to a record high of $14,527.50 on January 29 despite analyst warnings of weak demand, rising stockpiles and the likelihood of higher supplies.
“You’re seeing volatility in precious metals spill over into copper, though not to the same degree,” said Anant Jatia at Greenland Investment Management, a hedge fund specialising in commodity arbitrage trading.
The precious metals market, from his point of view, has become increasingly speculative, operating in tight liquidity that poses risks for both long and short positions.
“In this kind of volatility, cash is king. For both speculators and hedgers, liquidity is the only thing that ensures you can defend your positions,” he added, referring to both base and precious metals markets.
In top metals consumer China, several traders and analysts cautioned against over-interpreting the remarks made by an official at the state-backed China Nonferrous Metals Industry Association about plans to expand China’s strategic copper reserves.
Adding further pressure on copper, available stocks in LME-registered warehouses rose to 155,725 tons, their highest since March, after 12,750 tons were put back on warrant in Taiwan and South Korea.
In other LME metals, nickel gained 0.3% to $17,495 a ton. Goldman Sachs and Macquarie lifted their average 2026 nickel price forecasts above $17,000 on Tuesday, citing tighter supply from top producer Indonesia.
Aluminium fell 0.2% to $3,100.50 a ton, zinc was down 0.1% at $3,335 while lead rose 0.1% to $1,965 and tin lost 0.4% to $49,050.
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