Prices of nonferrous metals fell on Tuesday as traders and investors in Asia exercised caution following sessions of strong price rallies, partly driven by speculative trading.
Three-month copper on the London Metal Exchange fell 0.8% to $9,749 per metric ton by 0409 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange fell 1.9% to 78,540 yuan ($10,841.03) a ton.
LME copper is still up 14% so far this month and hovering near a strong resistance level of $10,000.
SHFE copper has been breaking fresh record highs almost every session in April.
Speculative trading, hedges against sticky inflation, supply disruptions in some metals and some positive macroeconomic data have fuelled the rally in metal prices.
LME nickel dropped 2.7% to $19,205 a ton, tin tumbled 3.9% to $33,145, aluminium declined 1.4% to $2,633.50, zinc shed 1.4% to $2,792.50 and lead decreased 0.8% to $2,152.
The LME cash aluminium was traded at a premium of $27.09 a ton over the three-month contract, the highest premium since June last year, indicating tightness of near-term supply.
Nickel at multi-month highs as talks of Chinese purchase fuel supply fears
LME cancelled warrants - or stocks earmarked for deliveries - of aluminium have surged to 348,000 tons, the highest since February 2022.
Cancelled warrants of lead also leaped to 129,650 tons, the highest since June 2013.
SHFE tin plummeted 6.6% to 260,880 yuan a ton, aluminium fell 1.5% to 20,260 yuan, lead dropped 2.6% to 16,835 yuan, nickel decreased 1.7% to 142,400 yuan and zinc declined 1.4% to 22,410 yuan.
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