Copper retreats on profit-taking ahead of US inflation data

BEIJING: Copper prices slid on Tuesday as expectations eased for rate cuts in the United States, sparking a bout of profit-booking.

The most-traded copper contract on the Shanghai Futures Exchange was down 0.36% at 102,600 yuan ($14,706.73) per metric ton, as of 0243 GMT.

The contract hit a high at 104,800 yuan earlier in the session, close to the record 105,500 yuan touched last week.

Benchmark three-month copper on the London Metal Exchange was 0.6% lower at $13,130 per ton. After softer jobs data, JP Morgan said it no longer expects the US Federal Reserve to cut interest rates in 2026.

“Hopes of any near-term rate cuts have been dashed, pulling the trigger for a pullback in prices,” said a Beijing-based trader on condition of anonymity as he is not authorised to speak to media. Additionally, investors were awaiting US inflation data to gauge the interest rate trajectory this year.

Meanwhile, SHFE tin extended rally to a third day and hit its highest since March 9, 2022 at 387,500 yuan amid falling stocks.

Falling domestic output due to equipment maintenance at smelters and lower inventories signalled tightening spot supply, underpinning prices, analysts at broker Ruida Futures said in a note.

Long-term demand optimism for the metal, which is used to make semiconductors, also injected upward momentum, they said.

SHFE aluminium dipped 0.12%, nickel shed 0.57%, lead fell 0.35%, and zinc gained 0.81%.

Among other LME metals, aluminium was little changed, nickel added 0.93%, lead lost 0.17%, tin advanced 0.87%, and zinc dipped 0.23%.