METALS-Copper retreats on stronger dollar, weak China data
By Polina Devitt
LONDON, Nov 27 (Reuters) - Copper prices came under pressure on Thursday from a stronger dollar and weak data from top metals consumer China, after hitting their highest in almost a month in the previous session.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.5% at $10,920 a metric ton in official open-outcry trading.
The metal touched $11,025 on Wednesday, its highest since October 30, on expectations that the U.S. Federal Reserve will cut interest rates in December. It hit a record high of $11,200 on October 29 due to mine supply disruptions.
With the U.S. markets closed for the Thanksgiving holiday, the metals market focus was on data showing that China's industrial profits contracted in October as well as on developer Vanke's debt woes.
On the technical front, copper is supported by the 21-day moving average at $10,811.
The 2%-3% premium of the Comex copper contract over the LME benchmark 0#LMECMXCU:, which keeps attracting the metal into the U.S. stockpiles, is likely to persist over the next 18 months, an LME executive said, citing uncertainties around copper tariffs in the U.S.
Comex copper stocks HG-STX-COMEX, last at 378,900 metric tons, hit a record high last week and have continued to climb this week. Stocks in the LME-registered warehouses MCUSTX-TOTAL are down 42% this year at 157,175 tons.
This is adding to concerns that the inventories outside of the U.S. will stay relatively tight. The premium for the LME cash copper contract over the three-month forward CMCU0-3 hit its highest since mid-October of $25 a ton on Monday and was last at $20 on Thursday.
In other LME metals, aluminium CMAL3 fell 1.2% to $2,827.5 a ton in official activity, zinc CMZN3 lost 1.1% to $3,024, while lead CMPB3 and nickel CMNI3 added 0.1% to $1,981 and $14,830, respectively.
Tin CMSN3 rose 0.4% to $38,125 after hitting $38,650, a peak since May 2022, on fund activity led by persistent worries about supply disruptions.
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