Copper retreated after hitting a record high in the previous session, leading to weakness across base metals as US President Donald Trump and Chinese President Xi Jinping start pivotal trade talks.
Futures on the London Metal Exchange fell as much as 1.4% on Thursday, pulling back from a surge to an all-time high in the previous session that capped a 28% year-to-date advance.
The pullback comes amid renewed caution across metals markets, with investors awaiting the outcome of a rare meeting between Trump and Xi in South Korea. The talks are expected to address trade frictions and industrial policy, but the potential lack of immediate policy signals has kept sentiment subdued.
Meanwhile, Federal Reserve Chair Jerome Powell’s blunt warning that investors need to rein in expectations for a December interest-rate cut is adding further pressure on metals.
LME copper prices dropped 1.1% to $11,056 a ton at 11:07 a.m. Singapore time, while aluminum was down 0.5%. Other metals including lead, nickel and zinc also edged lower. Iron ore futures in Singapore climbed 0.2% to $107.4 a ton, while Shanghai steel futures dipped.
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