Copper falls after hitting three-month high

New bank loans in China hit a record high in January

U.S. reciprocal tariff plans delayed until April 1

Premium on U.S. copper futures vs LME contract eases

LME cash vs three-month copper spread swings to a premium

LONDON, Feb 14 (Reuters) – Copper prices fell after hitting their highest in more than three months in London on Friday as U.S. retail sales data missed expectations, offsetting improved demand prospects in top metals consumer China.

Three-month copper on the London Metal Exchange was down 0.3% at $9,456 a metric ton by 1738 GMT after hitting its highest since November 7 at $9,684.50.

U.S. retail sales dropped by the most in nearly two years in January, data showed on Friday, suggesting a sharp slowdown in economic growth early in the first quarter.

Meanwhile, new bank loans in China surged more than expected to a record high in January as the central bank moved to shore up a patchy economic recovery, reinforcing expectations of more stimulus in the coming months.

“Demand in China looks quite good, especially for copper, after it came back from (the Lunar New Year) holiday,” said Dan Smith, head of research at Amalgamated Metal Trading.

The market set aside the U.S. import tariff worries as President Donald Trump on Thursday ordered U.S. officials to study reciprocal tariffs against countries that place tariffs on U.S. goods and to return their recommendations by April 1.

“The tariff risks are being looked through for now because, after all the rhetoric, it is actions that count really,” Smith said.

The LME copper contract is up 5% this month, also supported by a jump in U.S. Comex copper futures. The premium for U.S. futures over the LME contract reached a record high this week above $1,000 a ton, but fell below the mark on Friday.

The spread between the LME cash contract and three-month contract

spiked to a premium on Friday and after an unusually volatile session was last at $13.4.

LME aluminium gained 1.3% to $2,637 a ton. U.S. tariff concerns have helped to lift the U.S. Midwest aluminium premium by 39% this month and it remains at its highest since April 2022.

In other metals, zinc fell 0.1% to $2,842 a ton and tin added 2.3% to $32,595. Zinc hit its highest since January 22 while tin touched its highest since October 16.

Lead edged down by 0.1% to $1,985.50 and nickel added 0.6% to $15,460. (Reporting by Polina Devitt in London Editing by David Goodman, Elaine Hardcastle)