Copper has pulled back from its recent record high as indications of softening Chinese demand heading into winter suggest a looming global supply squeeze may be less severe than feared.
The industrial metal ended a two-day advance on the London Metal Exchange, while Comex futures in the United States also moved lower.
Analysts at Jinrui Futures Co said in a note that seasonal demand from Chinese fabricators, in the world’s largest copper-consuming market, has weakened, freeing up more metal for export.
Adding to signs of cooling appetite for imported copper, the Yangshan copper premium – the surcharge paid by traders to bring the metal into China – has fallen to its lowest level since July.