METALS-Copper falls after hitting three-month high

Updates prices

By Polina Devitt

LONDON, Feb 14 (Reuters) - Copper prices fell after hitting their highest in more than three months in London on Friday as U.S. retail sales data missed expectations, offsetting improved demand prospects in top metals consumer China.

Three-month copper CMCU3 on the London Metal Exchange was down 0.3% at $9,456 a metric ton by 1738 GMT after hitting its highest since November 7 at $9,684.50.

U.S. retail sales dropped by the most in nearly two years in January, data showed on Friday, suggesting a sharp slowdown in economic growth early in the first quarter.

Meanwhile, new bank loans in China surged more than expected to a record high in January as the central bank moved to shore up a patchy economic recovery, reinforcing expectations of more stimulus in the coming months.

"Demand in China looks quite good, especially for copper, after it came back from (the Lunar New Year) holiday," said Dan Smith, head of research at Amalgamated Metal Trading.

The market set aside the U.S. import tariff worries as President Donald Trump on Thursday ordered U.S. officials to study reciprocal tariffs against countries that place tariffs on U.S. goods and to return their recommendations by April 1.

"The tariff risks are being looked through for now because, after all the rhetoric, it is actions that count really," Smith said.

The LME copper contract is up 5% this month, also supported by a jump in U.S. Comex copper futures HGc2. The premium for U.S. futures HGc2 over the LME contract reached a record high this week above $1,000 a ton, but fell below the mark on Friday.

The spread between the LME cash contract and three-month contract CMCU0-3 spiked to a premium on Friday and after an unusually volatile session was last at $13.4.

LME aluminium CMAL3 gained 1.3% to $2,637 a ton. U.S. tariff concerns have helped to lift the U.S. Midwest aluminium premium AUPc2 by 39% this month and it remains at its highest since April 2022.

In other metals, zinc CMZN3 fell 0.1% to $2,842 a ton and tin CMSN3 added 2.3% to $32,595. Zinc hit its highest since January 22 while tin touched its highest since October 16.

Lead CMPB3 edged down by 0.1% to $1,985.50 and nickel CMNI3 added 0.6% to $15,460.

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