LME copper dips on firmer US dollar, thin Asia trade

Copper softened in thin Asia trade on Tuesday as a firmer dollar, coupled with increasing inventories and weak demand, pressured prices. Benchmark copper on the LME dropped 0.5% to $12,782.50 a metric ton at 0328 GMT.

China’s Lunar New Year holiday this week means low volumes and possibly volatile moves due to settlement or rollover of maturing contracts on the London Metal Exchange on Wednesday, traders said.

The dollar held onto gains on the day as markets looked ahead to Wednesday’s release of minutes from the January meeting of the Federal Reserve’s for clues into the potential timing of rate cuts.

A stronger US dollar makes greenback-priced metals more expensive for holders of other currencies, which could potentially subdue demand and undermine prices.

Copper stocks in LME approved warehouses increased by 7,975 tons to 211,850 tons on Monday, the highest since April 2025.

Stocks for the metal on the world’s three biggest metal exchanges have also exceeded 1 million metric tons for the first time in more than two decades, as an inventory build-up due to soft China demand added to recent stockpiling in the US Meanwhile, the world’s top copper producer BHP Group reported a stronger-than-expected half-year underlying profit driven by copper, which, for the first time, surpassed iron ore in the top global miner’s earnings, as prices for the metal surged on AI-fuelled demand.

In other metals, zinc prices fell 0.6% to $3,269.0 a ton, its lowest in more than a week. Aluminium eased 0.3% to $3,041.0, extending losses to a fourth straight session.

Lead eased 0.1% to $1,956, tin rose 1.5% to $45,225 and nickel was steady at $17,100 a ton.