METALS-Copper and other base metals fall on profit-taking

By Polina Devitt

LONDON, Jan 30 (Reuters) - Copper prices fell on Friday, pressured by a stronger dollar and profit-taking as some investors locked in gains after the previous session's record high.

Benchmark three-month copper CMCU3 on the London Metal Exchange dropped 3.3% to $13,161 a metric ton by 1706 GMT but held above its 21-day moving average, which provides support at $13,011.

Copper is up 6% this month, having hit a record high of $14,527.50 as speculators extended their buying spree on Thursday, driving the LME's index of six base metals contracts .LMEX to its own record high.

Copper's record-breaking start to the year cannot be justified by market fundamentals, Stonex analyst Natalie Scott-Gray said in a note. Copper above $13,000 a ton is unsustainable throughout 2026, she said.

In top metals consumer China, the fall in copper prices lifted the Yangshan premium SMM-CUYP-CN by 17% to $27 a ton, still historically low for a metric that reflects Chinese appetite for imported copper. The premium hit $20 this week for its lowest since mid-2024.

The selloff in base metals was given momentum by a stronger dollar in the lead-up to U.S. President Donald Trump's choice of former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell's term ends in May. A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies. FRX/

Friday's volatility coincided with a one-hour delay to the start of trading at the LME electronic platform because of technical problems.

However, LME base metals held up relatively well compared with precious metals, where silver and platinum registered falls in double-digit percentages.

In other LME metals, aluminium CMAL3 fell 2.3% to $3,146 a ton, zinc CMZN3 dropped 0.1% to $3,405.50, lead CMPB3 shed 0.3% to $2,006.50 and tin CMSN3 slid 7.2% to $51,150 while nickel CMNI3 lost 3.2% to $17,770.