LONDON — Copper prices fell for the second session on Friday as softer demand from price-sensitive consumers such as China pushed the growth-dependent metal down from its recent highs sparked by the 90-day US-China trade truce.
Benchmark three-month copper on the London Metal Exchange (LME) was down 1.2 percent at $9,457.50 a metric ton.
The metal, used in power and construction, touched $9,664 on Wednesday, its highest since April 2, and is up 4 percent so far this month.
“Copper prices above $9,500 seem to again be encountering the same Chinese price sensitivity that has eventually and fundamentally reined in previous rallies over the last two years,” JP Morgan said in a note this week.
This reaction can be seen in a sharp growth of copper inventories in top metals consumer China this week: warehouses monitored by the Shanghai Futures Exchange CU-STX-SGHreported a 34 percent jump in copper inventories to 108,142 tons on Friday, the first net weekly increase since mid-March.
The initial optimism about the 90-day pause agreed by Beijing and Washington on most of their retaliatory tariffs has faded with the market focus turning back to the health of the global economies.
“Chinese traders are happy about the 90-day pause, but the market has remained uncertain about what is going to happen after the 90 days,” a Shanghai-based metals analyst said.
