LONDON: Copper dipped on Tuesday as investors booked profits from the metal’s sharp rally and waited for the latest US Federal Reserve decision on interest rates, while tin prices leapt to an all-time peak.
Benchmark three-month copper on the London Metal Exchange was down 1.2 percent at USD13,038 per metric ton in official open outcry activity. It hit USD13,311 on Monday, close to its record high of USD13,407 set earlier this month.
The market is seeing some profit-booking, which has led to price declines, traders said.
“Copper has had a strong run, and with prices still elevated, it’s not surprising to see some investors lock in gains,” ING analyst Ewa Manthey said.
“A Chinese New Year effect may be starting to creep in when we tend to see a slowdown in Chinese physical activity and liquidity. However, the broader backdrop hasn’t really changed - inventories remain tight, supply constraints persist,” she added.
Lunar New Year, which sees top metals consumer China shut down for a week-long holiday, falls on February 17 in 2026.
LME copper stocks have nudged up to 172,350 tons, the highest since May, following more than 11,000 tons of inflows into US LME warehouses this month.
The bulk of exchange copper stocks are currently in the United States, with the LME volumes dwarfed by the more than 500,000 tons in Comex warehouses.
The dollar lost ground ahead of Wednesday’s US rate decision, making dollar-denominated metals more affordable for holders of other currencies and offering support to prices.
Tin was up 2.7 percent at USD55,690 a ton in open outcry but subsequently surged as much as 7.3 percent to a record USD58,175, rebounding from a sharp decline in the previous session.
“The funds and the Chinese are adding to their longs,” one tin trader said. “I suspect the problems will come when they start taking profits.”
Aluminium slipped 0.3 percent to USD3,177.50, while zinc fell 0.4 percent to USD3,329 after touching a near three-year high on Monday amid spiralling power costs. Nickel added 0.2 percent to USD18,565 and lead was down 0.5 percent at USD2,028.50.
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