Metal prices dropped further on Friday on weak sentiment amid Beijing’s crackdown on coal prices and lower steel production.

A domestic shortage of rare earths is looming as China, which accounts for 70% of global production.

Chinese state planner said there was more room to adjust coal prices after its recent investigations into producers.

"Iron ore demand will be dented in the long term,” analysts with CITIC Securities said in a note.

One of China's biggest copper producers saw profits fall 33% in July-September from the previous quarter.

China also urges miners to deliver about an additional 100 million tonnes of coal in the final three months of the year to help meet winter demand.

Copper prices are due to extend their decline next year from record levels touched in 2021 as mine supply ramps up and economic growth tapers in top market China.

"Steel supply is expected to be restricted continuously, iron ore demand will be dented in the long term," CITIC Securities analysts said in a note.