Business

Copper falls from 8-month high on profit-taking


London: Copper retreated on Wednesday as investors cashed in on a rally that took prices to an eight-month peak after doubts set in over a US-China trade deal.


US Treasury secretary Steven Mnuchin said tariffs will remain after a Phase 1 trade deal signing later on Wednesday, but President Donald Trump could consider easing them if China moves quickly to seal a second agreement.


Also some people probably want to liquidate and take profit at this stage and see how it goes after the signing later today,” said Wenyu Yao, senior commodities strategist at ING Bank in London.


Benchmark copper on the London Metal Exchange snapped a seven-session winning streak, having gained 9 per cent at its peak on Tuesday since early December.


In the short term it’s hard to justify prices based on a recovery of real demand,” she added.


“The physical market will slow down before the Lunar New Year and most end users will stop buying from next week until ... February,” said Fred Gu, a VP at Bayin Resources, referring to a weeklong holiday in China starting January 24.






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