Copper prices slipped on Tuesday on profit-taking from a blistering rally, worries about the prospect of slower U.S. rate cuts and concern about Chinese demand.

Benchmark three-month copper on the London Metal Exchange shed 0.8% to $11,545 a metric ton in official open-outcry trading, having touched a record peak of $11,771 on Monday.

LME copper has surged 31% so far this year, with about 10% of that in the last several weeks.

“It’s been a phenomenal run-up and as we scale these highs, some nervousness may creep in and there will be corrections along the way,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Copper gains have been supported by flows of metal to the U.S. on expectations of tariffs being imposed, tightening supplies in the rest of the world.

Copper inventories in U.S. Comex warehouses have more than doubled over the past six months, rising to a record high of 439,510 short tons (398,717 metric tons).

“A bit of caution is emerging ahead of the (Federal Open Market Committee) meeting tomorrow, which could be one of the reasons behind the profit-taking we’re seeing today,” Hansen said.

Industrial metals joined other financial markets such as equities in easing ahead of an expected rate cut this week from the Federal Reserve, where the focus will be on the future path of rates.

The U.S. central bank faces a turbulent 2026 as the term of Chair Jerome Powell ends and the Fed grapples with lingering concerns over inflation and resilience in the U.S. economy.

The most-traded copper contract HG1! on the Shanghai Futures Exchange closed daytime trading down 1.5% to 91,090 yuan ($12,883.65) per ton. Shanghai copper has gained 25% this year.

In top metals consumer China, some investors have scaled back expectations for near-term stimulus measures following a top Chinese leadership meeting.

Adding to the disquiet was a drop in China’s copper imports for a second consecutive month in November, as rising prices of the metal blunted appetite for shipments.

Among other metals, LME aluminium eased 0.7% to $2,867 a ton in official activity, zinc dropped 0.4% to $3,108, lead gave up 0.3% to $1,992, tin dipped 0.1% to $39,850, and nickel added 0.1% to $14,850.
Source: Reuters