Copper drifted lower on Thursday as traders reduced exposure ahead of the upcoming Christmas holiday and waited for a U.S. inflation report that could provide clarity on the Federal Reserve’s monetary policy trajectory.

Benchmark three-month copper on the London Metal Exchange HG1! was down 0.1% at $11,726 per metric ton in official open outcry activity, having slipped as much as 0.6% earlier in the session.

“There’s not really any appetite for fresh positioning at this stage,” said Ole Hansen, head of commodity strategy at Saxo Bank, adding that light profit-taking was taking place. “Books are being reduced. A spike in volatility is always a risk at this time of year.”

Copper has gained around 33% in 2025 and hit an all-time peak of $11,952 last week.

“The underlying trend still points toward to firm support for this metal as we head into 2026, with the supply side being challenged and demand looking like it will continue to move higher,” Hansen added.

The dollar index DXY nudged up 0.2%, making dollar-denominated metals more expensive for holders of other currencies.

“Risk sentiment is fragile after the latest wobble in U.S. technology shares, keeping traders focused on the next round of inflation data and central bank communication,” Neil Welsh, head of metals at Britannia Global Markets, said in a note.

Aluminium ALI1! dropped 0.3% to $2,896 per ton, having climbed in the previous two sessions after South32 S32 said it would shut its Mozal smelter in Mozambique in March.

“While the market has partially priced in the risk of Mozal’s closure, formal confirmation would likely add upward pressure to LME aluminium prices,” said Edgardo Gelsomino, aluminium research director at Wood Mackenzie.

Zinc ZNC1! fell 0.8% to $3,049 and lead LEAD1! lost 0.2% to $1,957, while nickel NICKEL1! gained 1% to $14,530.

Tin FTIN1! added 1.6% to $42,950 after earlier touching $43,345, its highest since April 2022. The metal used in circuit boards has attracted record long positions from fund managers and is up almost 47% in 2025, making it the best performer in the LME complex.
Source: Reuters