Base Metals Stage Rapid Retreat as Profit Taking Accelerates
- Traders faced losses on short positions earlier this month
- Downside for prices seen limited as investors buy the dips
This article is for subscribers only.
Copper extended its retreat from a record, and aluminum dropped from a two-year high, as investors looked to cash in after a blistering rally across industrial metals markets.
The red metal fell for the sixth time in seven sessions, losing as much as 3.8% during a broad sell-off on the London Metal Exchange. Prices have rallied sharply this year as mine supply tightened and macro-focused investors turned more positive on the global economy. Still, there have been consistent warnings the rally has run ahead of fundamentals.