Copper retreats on profit-taking ahead of US inflation data

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

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trade 0.46% lower at 102,290 yuan ($14,662.71) per metric ton.

The contract hit a high of 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 slipped 0.93% to $13,086 per ton by 0721 GMT.

After softer jobs data, JP Morgan said it no longer expects the U.S. 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. However, tight supply - partly because of the U.S. continuing to attract copper shipments amid higher premium - curbed price losses. "We expect copper prices over the next three-to-six months to be led by sentiment from investors over U.S. copper-specific tariffs with focus on regional levels of global stocks and material entering the US, rather than underlying global fundamentals," said Natalie Scott-Gray at StoneX in a note. Additionally, investors were awaiting U.S. inflation data to gauge the interest rate trajectory this year.

Meanwhile, SHFE tin extended its rally to a third day and hit an intraday high 395,000 yuan, a record last achieved on March 9, 2022, 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 0.85%, nickel shed 2.21%, lead fell 0.63% while zinc gained 0.85%.

Among other LME metals, aluminium shed 0.71%, nickel slid 1.39%, zinc dipped 0.19% while lead added 0.17% and tin was little changed.