Copper eased from a record high it hit on Tuesday as investors stayed focused on future supply risks, following China’s planned output cuts and major producer Codelco’s premium hike.

The most-traded copper contract on the Shanghai Futures Exchange HG1! closed daytime trading nudging 0.10% higher at 88,920 yuan ($12,574.60) per metric ton, after touching a record high of 89,920 yuan a ton earlier.

Benchmark three-month copper HG1! on the London Metal Exchange declined 0.39% to $11,208.50 a ton by 0719 GMT.

The market is focused on supply risks, as investors assess the impact of major Chinese smelters’ plan to cut production by 10% next year.

Smelters’ plan to cut output reinforced the outlook that the supply of refined copper will turn tight, analysts at Chinese broker Jinrui Futures said in a note.

Meanwhile, Chile’s copper mining heavyweight Codelco sought a hike in its copper premium offers for 2026 long-term supply. The premiums are paid on top of LME copper prices.

The new offers were viewed as designed for buyers able to tap profits from Comex-LME arbitrage by delivering to warehouses in the U.S., adding to concerns that copper supply will be tight elsewhere.

The U.S. dollar continued to weaken, as hopes for a December interest rate cut by the Federal Reserve remained high.

A weaker dollar supports the copper market by making commodities traded with the greenback cheaper for investors using other currencies.

Among other SHFE base metals, aluminium ALI1! gained 0.60%, zinc rose 1.00%, lead gained 0.73%, nickel added 0.49%, and tin posted the sole decline of 0.24%.

Elsewhere on the LME, aluminium, zinc, nickel and tin were only slightly changed, while lead gained 0.20%.
Source: Reuters