Updates prices
By Polina Devitt
LONDON, Jan 8 (Reuters) - Copper and nickel prices fell on Thursday as the dollar strengthened and as investors locked in profits, extending a retreat from their recent rally.
Benchmark three-month copper CMCU3 on the London Metal Exchange fell 1.5% to $12,708.50 a metric ton by 1715 GMT. Copper had hit a record high of $13,387.50 on Tuesday, helped by concerns over tight mine supply and bets on future demand growth.
"The continued mirroring moves with precious metals suggest this is primarily profit taking and position clean-up, rather than a major shift in the underlying trend," Sucden Financial analysts said in a note.
Growth in the artificial intelligence and defence sectors will provide a 50% boost to global copper demand by 2040, but supplies are expected to fall short by more than 10 million tons annually without more recycling and mining, consultancy S&P Global said.
Goldman Sachs raised its copper price forecast for the first half of 2026 to $12,750 from $11,525, citing a scarcity premium amid limited inventory coverage outside the United States.
Nickel CMNI3 slid 4.1% to $17,155 a ton as the Indonesian government refrained from disclosing its 2026 mining output quota, snapping a rally that had sent the metal to its highest since mid-2024 on Wednesday at $18,800.
"Until Indonesia provides details of how much and when it will reduce nickel production, we may see nickel prices slip," said WisdomTree commodities strategist Nitesh Shah.
Nickel stocks MNISTX-TOTAL in LME-registered warehouses are at 276,300 tons, their highest since mid-2018, after inflows to Asia-listed warehouses this week.
Indicating that there is plenty of metal for near-term delivery, the discount on cash LME nickel against the three-month forward CMNI0-3 widened to $224 a ton on Wednesday for its highest since March, up from $144 on Friday.
LME aluminium CMAL3 rose 0.1% to $3,090 a ton, zinc CMZN3 eased by 1.2% to $3,131, lead CMPB3 lost 1.2% to $2,024 and tin CMSN3 slid 1.3% to $43,650.
(Reporting by Polina DevittEditing by David Goodman and Susan Fenton)
((polina.devitt@thomsonreuters.com))
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