Metals market alert: Why copper price is falling today after stockpiles hit 20-year high and aluminum slips amid tariff uncertainty

Copper price and aluminum price today: After weeks of strength, the momentum in industrial metals paused as growing copper stockpiles and uncertainty around US import tariffs made traders cautious. With many Asian participants away for the Lunar New Year holiday, market activity was relatively quiet.

Copper Prices Slip as Global Stockpiles Hit Two-Decade High

Copper dropped as much as 0.8%, slipping below $12,800 a ton. The decline came as inventories tracked by the London Metal Exchange climbed to their highest level in more than 20 years, as per a report.

Aluminum Edges Lower Ahead of US Tariff Clarity

Aluminum also weakened, falling as much as 0.6%, as investors waited for clearer details on US tariffs. In the US, markets were closed Monday for Presidents’ Day and are set to reopen Tuesday.


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China’s Demand Cools as Prices Stay Near Record Levels

In China, the world’s largest copper consumer, near-record prices have started to cool industrial demand, as per a Bloomberg report. As buying slows, exchange inventories are rebuilding. Part of the recent increase reflects earlier shipments sent to the US ahead of anticipated tariffs.

Global Copper Inventories Cross 1 Million Tons

Data from Bloomberg, SHFE, LME, and COMEX show that combined copper inventories across Shanghai, London, and New York have now risen above 1 million tons, a level not seen in decades. On Monday alone, readily available stocks tracked by the LME increased again.

LMEX Index Pulls Back After Record High

The LMEX Index, which measures six major base metals traded in London, hit a record last month on strong Chinese buying and a weaker US dollar. Since then, prices have eased as traders look for fresh direction, particularly regarding US import tariffs and the Federal Reserve’s monetary policy outlook.

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BHP Earnings Rise as Copper Takes Center Stage

At the same time, BHP Group reported that first-half earnings climbed by more than 20%, supported by a long-term push to boost copper production. That strength helped offset weakness in its China-focused iron ore and steelmaking coal operations. Copper now generates more than half of the company’s profits.

By 11:50 a.m. in Shanghai, copper futures were down 0.6% at $12,775.50 a ton and aluminum fell 0.5% to $3,037.50, zinc declined 0.7% to $3,268, and nickel slipped 0.1%, as per the Bloomberg report.

FAQs

Why did copper prices fall?

Copper declined as inventories rose to the highest level in more than 20 years and traders remained cautious about US tariffs.



How much did copper drop?

Copper fell as much as 0.8%, slipping below $12,800 a ton.