After reaching heights Historic, copper prices fell sharply this Friday, affecting their lowest level in a week. Companies taking profits from funds speculative and firm on the part of Chinese regulators, the red metal is experiencing a sharp downturn stopping.

The base metals market is booming correction phase. On the London Metal Exchange (LME), the reference price copper fell 1.2% to $12,955 per cent at three months ton. This fall marks a fall of 5% from the all-time high of 13,407. dollars reached last Wednesday.

This trend reversal coincides with the announcement of the financial market regulatory authority in China. Premier global consumer of metals, the country has promised to crack down on the” “excessive speculation” as stock market indexes neared highs decennial. In Shanghai, the most traded copper contract closed lower by 2.3%, reflecting a clear desire on the part of the authorities to curb the frenzy of purchases.

According to Alastair Munro, a strategist at Marex, “China is reducing risks and trying to calm the euphoria of individual investors.” This regulatory pressure has weighed on the whole session.

Beyond the speculative aspect, Physical market fundamentals are showing signs of weakness. The bonus of Yangshan copper, a key indicator of Chinese import demand, has plunged 16% to reach its lowest level since December.

At the same time, stocks are piling up: warehouses monitored by the ShFE recorded an 18% increase in copper reserves this week, reaching their highest level since April. Aluminum, lead and tin have similar dynamics increased stocks.

Despite this decline, copper is maintaining a increase of 20% over the last two months. This rally has so far been fuelled by fears about mining supplies and preventive flows to United States, prior to the possible entry into force of new tariffs.

From a technical point of view, copper is now looking for support around its 21-day moving average, located at 12,537 dollars. The metals sector as a whole ends the week in red: pewter slips by 3.5%, while nickel and zinc lose 2.5% and 1.9% respectively.