Copper Prices Retreat as Dollar Strengthens

Copper prices have retreated from near-record highs on Wednesday due to profit-taking and a stronger dollar. The benchmark three-month copper price on the London Metal Exchange (LME) dropped by 0.3% to $14,700 a ton, after earlier touching $14,833, its highest level since September 10.

The metal had reached a record high of $14,875 on that date, and Comex copper also hit a new high of $6.83 per lb or $15,057 a ton on Tuesday before falling on Wednesday.

Comex warehouses have been seeing modest daily inflows as the premium of US copper futures over LME prices edged higher after a sharp pullback. This was triggered by concerns about affordability following a Reuters report that the White House had yet to decide on copper import tariffs.

The current market backdrop, which includes robust demand in top consumer China ahead of public holidays and tight supply outside the US, has helped LME copper rise 18% so far this year. Analysts at RBC Capital Markets note that buyers are willing to pay a premium to secure metal sooner, reinforcing the narrative of a tighter market.