Copper prices in London experienced a decline on Friday, stepping back from a 14-month peak reached in the prior session as the U.S. dollar strengthened following better-than-expected March job growth data. This outcome raised the likelihood of potential delays in anticipated U.S. interest rate cuts for the year.
On the London Metal Exchange (LME), three-month copper dropped by 0.4% to $9,318.50 per metric ton by 1543 GMT after reaching $9,397.5 on Thursday, marking the highest level since January 2023.
Dan Smith, the head of research at Amalgamated Metal Trading, commented on the recent copper price movements, highlighting the rapid ascent of copper and the emerging downside risks despite potential short-term gains.
Earlier in the week, positive manufacturing data from China and expectations for rate cuts in the U.S. and Europe had bolstered growth-oriented industrial metals. However, with Chinese markets closed on April 4-5 and seasonal trends suggesting a typical slowdown in Chinese copper production during the Northern Hemisphere summer months, market dynamics are evolving.
The LME cash discount over the benchmark three-month copper contract reached a new record high of $118.75 on Friday, indicating to Smith that copper prices may be nearing their peak.
Technically, copper’s 5% growth this week propelled it above key moving averages, with the nearest 21-day moving average standing at $8,914.
In other metal markets, aluminium rose by 0.2% to $2,448.5, lead lost 1.4% to $2,108, nickel gained 0.2% to $17,745, and tin added 0.4% to $28,735 after hitting its highest level since July 2023 at $29,045. Zinc shed 0.5% to $2,631.5 but was on track for an 8.0% weekly gain, marking its most significant rise since January 2023.