Industrial metals started the week on a subdued note, as many Asian traders were away for the Lunar New Year holiday and U.S. markets were also closed. Copper prices in London remained stable below $12,900 per ton, entering a consolidation phase after recent volatility. Aluminum, which fell on Friday following reports that U.S. President Donald Trump might narrow the scope of import tariffs, stabilized and recovered on Monday. As the world's largest metal consumer, China's near-record-high domestic metal prices have dampened demand for industrial metals such as copper. With manufacturers cutting back on metal orders, exchange inventories have continued to rise, replenishing stocks that had previously flowed into the U.S. in anticipation of tariff hikes. Deliverable copper inventories tracked by the London Metal Exchange (LME) increased again on Monday, pushing total stocks across the Shanghai, London, and New York exchanges above 1 million tons—the highest level since 2003. The LMEX Index, which tracks six major metals traded in London, hit a record high last month, driven by Chinese buying and a weaker U.S. dollar. Since then, the index has pulled back slightly, as traders await new market catalysts, including developments in U.S. tariff policy and the Federal Reserve's monetary outlook. As of 10:24 a.m. London time, copper futures held steady at $12,870 per ton; aluminum was unchanged at $3,076 per ton after falling 2.7% on Friday. Tin prices declined by 1.8%.
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