London Metal Exchange (LME) copper prices ended little changed in floor trading on Tuesday as profit-taking knocked the market off a new record high of $3,582.50 a tonne reached near the close, dealers said.
"The market is moving in roughly a $30 range between $3,550 and $3,580 a tonne, with $3,600 so far proving a tough nut to crack," one dealer said.
"With the premium for prompt delivery into LME warehouses still above $200, a spike higher remains possible - and with forward consumer buying evident in recent days, a closing move above $3,600 may yet happen."
Three months prices closed at $3,575, up $8, while the premium for prompt delivery into LME warehouses was around $210.
"Physical tightness is fairly steady and there is certainly nothing to spare for LME warehouses despite the high premium," another trader said.
"We see prices fairly steady in coming weeks, with potential for another spike higher."
Dealers reported evidence in the past few days of forward consumer buying as far ahead as 2006 - something not seen since January.
But analysts were more bearish.
Broker Natexis Commodity Markets said in its latest review that base metals were close to their peaks and the market focus should soon shift to evidence of slower demand growth this year and away from low stocks and Chinese consumption.
It said the loss risk for copper from funds was massive.
"As the markets start to move into surplus we might begin to see some more aggressive trading from the short side as well as long liquidation," it said, forecasting a 27 percent fall in average prices in 2006 to $2,300 from $3,150 this year.
Aluminium was at $1,886, up $14, while nickel was at $14,100, down $250.
Tin was up $175 to $7,375, while lead and zinc were little changed.