Copper prices fall on reports China to crackdown on high-frequency trading.


Copper prices came under pressure on Friday, on reports that China was clamping down on high-frequency traders.

  • Rio Tinto
  • 16 January 2026 11:24:00
Copper

Source: Sharecast

According to Bloomberg, regulators have told exchanges – including the leading metals platform Shanghai Futures Exchange – that they need to remove servers operated by high-frequency traders from their data centres by the end of the month.

It is thought to be part of broader efforts by the authorities to dampen futures market volatility.

Copper prices have been on an upward trajectory since October, and hit fresh highs only this week.

In London, they have now put on over 50% over the last year.

Demand for the metal is buoyant. It is vital to power grid upgrades, renewable energy and data centre construction, all of which are booming as demand for artificial intelligence soars.

But traders are concerned about potential shortages, with some mines becoming less productive as they age and strikes in Chile, the world’s largest copper producer.

Some of the uplift in prices has also been caused by stockpiling ahead of potential US tariffs coming in.

However, on Friday prices fell below $5.90 per pound on Comex, hitting $5.83 before paring back some of the losses. As at 1100 GMT, they were down 1% at $5.91.

Prices were also lower in London and elsewhere, as were shares in mining companies.

In London Glencore was down 1% at 484.25p, BHP was 2% lower at 2,421p, Antofagasta was off 2% at 3,590p and Rio Tinto 2% at 6,360.5p.

Neil Wilson, UK investor strategist at Saxo Markets, said: “Copper has been signalling strong economic growth in 2026, in nominal terms at least. China has apparently moved to clamp down on some high frequency traders at the Shanghai Futures Exchange, which has knocked prices down from record highs.”


Exchange: London Stock Exchange
Sell:
3,271.00 p
Buy:
3,272.00 p
Change: 36.00 ( 1.11 %)
Date:
Prices delayed by at least 15 minutes

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