Copper slips on profit-booking as investors eye Fed decision

Copper dipped on Tuesday after nearing a record high in the previous session as investors booked profits and waited for the latest U.S. Federal Reserve decision on interest rates.

Benchmark three-month copper on the London Metal Exchange declined 0.8% to $13,087 per metric ton as of 1020 GMT. It hit $13,311 on Tuesday, close to its all-time peak of $13,407 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 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 U.S. 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 index was flat, as the market tentatively awaited Wednesday's U.S. rate cut decision. The weak dollar has made dollar-denominated metals more affordable for holders of other currencies.

Tin was up 1.8% at $55,160 a ton, rebounding from a 4.6% decline in the previous session, when it had hit a record high of $57,515 before plummeting after the Shanghai Future Exchange imposed position restrictions.

Aluminium dropped 0.6% to $3,10.50, while zinc slipped 0.2% to $3,337 after touching a near three-year high on Monday amid spiralling power costs. Nickel added 0.9% to $18,675, while lead fell 0.5% to $2,027.50.