Copper Prices Slide from Near-Record Highs on Profit-Taking and Stronger Dollar

Copper prices have fallen from near-record highs due to profit-taking and a stronger dollar. The benchmark three-month copper on the London Metal Exchange (LME) dropped by 0.3% to $14,700 a ton by 1005 GMT. This decline comes after copper earlier touched $14,833, its highest level since September 10 when it hit a record high of $14,875.

The Comex copper market saw a record high of $6.83 per lb, or $15,057 a ton on Tuesday, before retreating on Wednesday. Analysts at RBC Capital Markets pointed out that buyers are willing to pay a premium to secure metal sooner, reinforcing the narrative of a tighter market.

The spread between the LME cash copper contract and the three-month benchmark has swung into a premium this week, with a last reading of $76 a ton compared to a discount of $86 on September 14. This shift in the market dynamics is attributed to concerns about tightness outside the US, as well as robust demand in top consumer China ahead of public holidays.