London Metal Exchange (LME) copper prices were off 2.1 percent at Tuesday's kerb, resting on support after liquidation by investors increasingly nervous of rising stocks, traders said.
"The market was looking a bit tired, especially with the rising stocks," one trader said, but he added that inventories remained uncomfortably low.
Three-months copper earlier slipped to a two-week low of $3,470.50 a tonne, but closed at $3,489, versus $3,563 at Monday's kerb. Support was pegged at $3,480.
LME stocks rose by 3,175 tonnes on Tuesday and by almost 6,500 this week, lifting the total to nearly 45,000.
"If there are further inventory increases the bulls will find it hard to keep prices up at these levels," Standard Bank, London, analyst Robin Bhar said.
"If stocks get towards 60,000 tonnes it will put a very different light on the market and the funds could reduce their positions and re-establish them at lower levels," he said.
Traders said an expected 25 basis point rise in interest rates by the US Federal Reserve after a meeting at 1815 GMT had already been priced into the market.
Aluminium was at $1,849, down $24, while nickel was untraded indicated at $14,200/250, down $250.
Alcan Inc, the world's second-largest maker of primary aluminium, said it expects a 4.6 percent rise in world aluminium consumption in 2005 and a 6.3 percent rise in global production.
It saw a world market deficit for aluminium of about 200,000 tonnes this year.
China's decision to lift tax breaks in order to halt aluminium tolling failed to lift the market.
"The confirmation of the Chinese tolling ban has not had much of an influence," Bhar said.
"I think the market is waiting to see how effective it is to slow rising output," he said, adding that previous attempts by China to cool aluminium production had not been very successful.
Zinc was off $20.50 at $1,268, while tin was at $6,875, down $155. Lead was untraded, indicated steady at $840/41.
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