Copper slips after nearing record highs on profit-booking

Copper retreated on Tuesday after nearing record highs, as the red metal came under pressure amid profit-taking and the Shanghai Futures Exchange’s move to further raise margin ratios.

The most-traded copper contract on SHFE dropped 0.64% to 102,100 yuan ($14,675.44) a metric ton, as of 0255 GMT.

The benchmark three-month copper on the London Metal Exchange declined 1.11% to $13,052 a ton, still above the $13,000 level.

Copper is nearing record highs, with the Shanghai contract hitting 104,100 yuan overnight and the London benchmark pushing to $13,311 on Monday.

Market saw some profit-booking selling, leading to the decline, traders said.

Copper’s decline came after SHFE adjusted margin ratios, a move traders saw as mitigating risks amid rising price volatility.

SHFE stepped in on Monday to increase margin requirements and widen price limits for copper and aluminium, with these adjustments effective from January 28.

The move on Monday was the bourse’s second since January 20, targeting the two metals, as both, among the best performers in the base metal complex, saw volatility enter 2026.

The Shanghai exchange is increasingly stepping into making regulatory changes and restrictions in 2026.

Also on Monday, SHFE curbed trading for several clients for failing to disclose common control of trading accounts, while adjusting trading limits for both metals.

As a result, tin pulled back from a record-setting rally and continued to fall on Tuesday.

The Shanghai most-active tin contract declined 2.58% to 431,200 yuan a ton, leading the loss among SHFE base metals. The benchmark tin in London dipped 0.24% to $54,100 a ton. Base metals almost dropped across the board on Tuesday.

Among other SHFE base metals, aluminium dropped 0.66%, lead shed 0.82%, nickel lost 2.42%, and zinc posted sole gain, up 0.36%.

Elsewhere on the LME, aluminium dropped 0.66%, zinc shed 0.64%, lead dipped 0.52% and nickel declined 0.71%.