LME copper futures fell sharply due to profit-taking and market risk aversion.

LME copper futures fell sharply on Friday, hurt by profit-taking and widespread risk aversion in financial markets as investors worried about soaring inflation.

17:00 London time (01:00 Beijing time)), LME copper for three-month delivery closed down $393.50, or 3.84%, at $9860.50 a tonne.

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Global stock markets fell after the US consumer price index (CPI) posted its biggest year-on-year rise in 40 years. This is expected to prompt the Fed to tighten monetary policy.

Carsten Menke, an analyst at Julius Baer, said: "risk aversion in financial markets is very high today and the dollar is higher due to yesterday's CPI data. In addition, after the previous rise, there may also be some profit-taking today. "

"as far as the overall situation is concerned, China's economy has generally cooled down. Infrastructure and real estate are both key drivers of demand for metals, neither of which we expect to reverse quickly. "

Menke expects LME copper prices to fall to $9500 a tonne in three months and $8750 in 12 months.

However, from the weekly point of view, most base metals, such as aluminium, are still up. Aluminium prices were supported earlier this week by the closure of smelters in China and Europe and low inventories in exchange warehouses.

LME aluminum for three-month delivery fell 3.5 per cent to $3136.50 a tonne after hitting a more than 13-year high on Thursday.

The dollar index rose to an eight-day high, making dollar-denominated commodities more expensive for investors holding other currencies.

In addition, Indonesia has suspended more than 1000 miners' mine operations due to failure to submit a work plan for 2022, according to a document issued by the Minerals and Coal Bureau of Indonesia's Ministry of Mines.

The Southeast Asian country has been seeking to improve regulation of the resources industry, and last month, Indonesian President Joko Widodo revoked the licenses of more than 2000 companies for failing to comply with the rules.