The recent correction across financial markets sent prices on the London Metal Exchange (LME) lower on Tuesday, but the metals managed to stay within their ranges underpinned by tight supply, dealers said.
"There is a meltdown everywhere, but this is just a reaction to the big run-up in the first quarter and I believe it will go higher again," an LME trader said.
"Overall, equities and commodities were long overdue a correction, so it is healthy that this is happening," he added.
Across the Atlantic, US stocks accelerated their fall as warnings from Federal Reserve officials about inflation over the last two days cemented expectations of further interest-rate increases.
The recent slowdown in financial markets, induced by inflation fears, has hit copper, which has fallen by 14 percent since its peak of $8,800 a tonne on May 11.
Copper closed at $7,510, down $270, despite a 750-tonne drawdown in LME stocks to 107,525 tonnes. But the metal traded in ranges, supported by supply concerns with Freeport-McMoRan Copper & Gold Inc saying copper production at its Grasberg mine would be about 16 percent below estimates for the second quarter.
Prices would stay resilient on low inventories and continued supply constraints, but thin trade could add to volatility, a Barclays Capital report said.
"Combined with a seasonally weaker period for demand over the northern hemisphere summer, LME trading volumes may well slow further, and most likely keep prices very volatile".
Barclays noted that aluminium, closing at $2,543 versus $2,585, looked particularly vulnerable near-term, but expected the price trend to continue upwards in the medium term.
Zinc was down $140 at $3,450 with LME inventories at 232,875 tonnes, down by 1,300, the lowest since February 2001.
Dealers said they would watch the expiration of the option contracts early on Wednesday, as this could renew momentum.
"Tomorrow it is option declaration day-so everyone is sitting on their hands to see if anything fun will happen then," another LME trader said.
Nickel was at $20,950 versus $21,450, tin fell $150 to $8,100 and lead lost $4 at $1,039.
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