Copper prices ticked back up in Asian trade on Friday on Chinese buying, but were still down from a new all-time high hit this week, with additional gains seen limited, dealers said.
The red metal has dipped around $150 from a new record high on Tuesday of $3,985, with investors taking profits amid fears of a wider sell-off from the recent fund-driven rally.
"The Chinese are short covering, but the quantities aren't that large," a Singapore-based trader said. Key three-month copper on the London Metal Exchange was trading at $3,860/$3,865 per tonne, up from $3,838 at the London close on Thursday.
Copper futures on the Shanghai Futures Exchange dipped, with the most active contract, December, dipping 180 yuan to 36,680 per tonne.
"Shanghai premiums are higher so that's why the Chinese are buying," a Tokyo trader said, adding that a firmer US dollar was also pressuring copper prices.
The US dollar was trading around 114.55 yen, little changed from levels late in New York on Thursday, when it touched a two-year high of 115.10 on expectations of continued US rate rises.
"This rally could go up top $3,800-900, but it will be very short-lived and will go down again to $3,750," the trader said. A stronger dollar makes base metals more expensive to holders of other currencies, pressuring prices.
In other metals, aluminium slipped to $1,924/$1,928 from $1,930 at the previous close, while zinc was at $1,473/$1,478, against $1,476. Tin was at $6,400/$6,500 against $6,460 and nickel was at $12,100/$12,150 against $12,200.
Lead was at $940/$945 versus $945.