copper prices fell tuesday as analysts cautioned the market was due for a correction after a dramatic rally stoked by donald trump <u+2019>s election. copper for december delivery closed down 0.6% at $2.5050 a pound on the comex division of the new york mercantile exchange. prices for the metal are up more than 19% from their october lows, driven by expectations of increased u.s. infrastructure spending under a new administration and a steadier economic outlook for china. china and the u.s. are the world<u+2019>s largest copper consumers, respectively. <u+201d>prices ran ahead of themselves,<u+201d> said william adams, head of research at fast markets ltd. <u+201c>we<u+2019>ll probably consolidate this week after the froth of last week.<u+201d> looking ahead, he said news of appointments to president-elect donald trump<u+2019>s team could move the market as investors seek a clearer understanding of the likely direction of u.s. government policy. meanwhile, chinese foreign direct investment data due later tuesday may shift views of the strength of demand from the world<u+2019>s key consumer of industrial metals. carsten menke, commodities research analyst at julius baer, said mr. trump<u+2019>s victory probably won<u+2019>t have a big influence on the global balance of supply and demand for base metals, even if he delivers on his promise to boost infrastructure investment. <u+201d>even an assumed 10% increase in [u.s.] infrastructure-related copper consumption would hardly matter on a global scale,<u+201d> he wrote. analysts at commerzbank highlighted <u+201c>further correction potential<u+201d> for copper after data from the u.s. commodity futures trading commission showed speculators<u+2019> net long position in copper futures on the comex division of the new york mercantile exchange rose over 150% to a record 59,300 contracts in the week to nov. 8. the data covers the period before the election of mr. trump, so next week<u+2019>s figure may show an even more bullish stance among speculators, commerzbank said. copper for delivery in three months closed down 0.6% at $5,525 a metric ton on the london metal exchange. write to ed ballard at ed.ballard@wsj.com and ira iosebashvili at ira.iosebashvili@wsj.com
copper falls after recent rally - wsj
ed ballard