METALS-Copper moves back above $13,000 after investors buy the dip

Feb 6 (Reuters) - Copper shrugged off an early dip to move back above $13,000 per metric ton on Friday, snapping two straight days of declines as more affordable price levels sparked some buying interest and investor sentiment improved.

Benchmark three-month copper CMCU3 on the London Metal Exchange was trading up 0.8% at $13,001 per ton as of 1700 GMT, having earlier slumped as much as 2.9% to $12,528.

The red metal hit a session-high of $13,037.50 and was on course to end the week down 1.2%, having fallen 10.5% from a record high of $14,527.50 on January 29.

The recent dip in prices has seen a merchant bid on copper emerge, broker Marex said in a note, adding that there had been support at the $12,500 level.

Copper had joined gold XAU= and silver XAG= in a broader correction, as an unwinding of long positions "pulled prices closer to fair value," analysts at Sucden Financial said.

Rising inventories have also weighted on prices. On the U.S. Comex exchange, copper stocks HG-STX-COMEX are at a record 531,999 tons, while LME copper inventories MCUSTX-TOTAL rose to 183,275 tons, the highest since May 2025, following further deliveries into South Korea and New Orleans.

Shanghai Futures Exchange CU-STX-SGH copper stocks climbed for a ninth straight week to 248,911 tons in a seasonal build-up ahead of lunar New Year.

ING analyst Ewa Manthey said the copper market would refocus on tight ore supply, growing demand from electrification and ongoing grid investment after the holiday. "In our view, those drivers haven't changed," she said.

Aluminium CMAL3 was the biggest gainer, jumping 2.2% to $3,091.50 a ton, after earlier sinking to $2,990, as the dollar index .DXY edged down, making metals for affordable for holders of other currencies. Consumer buying interest has emerged on previous dips below the $3,000 mark, Marex said.

Zinc CMZN3 gained 1.5% to $3,350, nickel CMNI3 nudged up 0.1% to $17,100, tin CMSN3 climbed 0.8% to $46,825 and lead CMPB3 added 0.2% to $1,958, after earlier touching a seven-week low of $1,945.