Copper hits one-week low

BEIJING, Jan 16 (Reuters): Copper prices hit a one-week low on Friday on profit-taking after a rally led by speculative funds while demand from physical buyers in China was muted. Benchmark three-month copper on the London Metal Exchange was down 1.4 per cent at $12,925 a metric ton in official open-outcry trading after hitting $12,774.5 for its lowest since January 9.

The metal used widely in power and construction is down 4 per cent since a record high of $13,407 on Wednesday. The securities regulator in top metals consumer China, meanwhile, vowed on Friday to crack down on excessive speculation after the country's benchmark stock index approached nearly 10-year highs this week.

"Metals have been under pressure this week at various points during the Shanghai day session as China reduced risk and authorities there try to cap the recent retail 'frenzy'," said Marex metals strategist Alastair Munro.