LONDON: Copper prices slipped on Tuesday on profit-taking from a blistering rally, worries about the prospect of slower US interest rate cuts and concern over Chinese demand.
Benchmark three-month copper on the London Metal Exchange shed 1.3 percent to USD11,485 a metric ton by 1715 GMT, having touched a record peak of USD11,771 on Monday.
LME copper has surged 31 percent this year, with about 10 percent of that in the past several weeks.
“It’s been a phenomenal run-up and as we scale these highs, some nervousness may creep in and there will be corrections along the way,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
Copper gains have been supported by flows of metal to the US on expectations of tariffs being imposed, tightening supplies in the rest of the world.
Copper inventories in US Comex warehouses have more than doubled over the past six months, rising to a record 439,510 short tons (398,717 metric tons).
“A bit of caution is emerging ahead of the (Federal Open Market Committee) meeting tomorrow, which could be one of the reasons behind the profit-taking we’re seeing today,” Hansen said.
Industrial metals joined other financial markets such as equities in easing ahead of an expected rate cut this week from the US Federal Reserve, where the focus will be on the future path of rates.
The US central bank faces a turbulent 2026 as the term of Chair Jerome Powell ends and the Fed grapples with lingering concerns over inflation and resilience in the US economy.
A firmer dollar index after US jobs data also weighed on metals, making commodities priced in the US currency more expensive for buyers using other currencies.
In top metals consumer China, some investors have scaled back expectations for near-term stimulus measures after a Chinese leadership meeting.
Adding to the disquiet was a drop in China’s copper imports for a second consecutive month in November as rising prices of the metal blunted appetite for shipments.
Among other metals, LME aluminium eased 1.1 percent to USD2,857.50 a ton, zinc dropped 1 percent to USD3,090.50, lead gave up 1.1 percent to USD1,976, nickel was down 0.6 percent at USD14,745 and tin dipped 0.3 percent to USD39,785.
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