Copper prices fell on Tuesday as investors, who had rushed into the market to push prices to seven-month highs, turned cautious ahead of Wednesday's expected US interest rate hike.
Expectations of a hawkish U.S. Federal Reserve weighed on stocks and boosted the dollar, making dollar-denominated industrial metals more expensive for many buyers.
The Bank of England and the European Central Bank are also expected to raise interest rates this week.
Copper for delivery in three months on the London Metal Exchange fell 1.2 percent to $9,104 a tonne.
Copper, used in electrical wiring, surged from about $7,500 in November to $9,550.50 on Jan. 18 as the dollar weakened and investors bet on a recovery in Chinese demand.
But with China closed last week for the Lunar New Year holiday, the rally lost momentum.
"A correction is probably long overdue," said Saxo Bank analyst Ole Hansen. The trigger, he added, was the strengthening of the US dollar ahead of the Fed's announcement this week.
Hansen said an expected recovery in Chinese demand and concerns about copper supply meant prices were unlikely to fall too far.
Data showed China's economic activity returned to growth in January, and the International Monetary Fund slightly upgraded its 2023 global growth outlook.
On the supply side, protests and blockades threaten to halt production at Peru's massive Las Bambas copper mine. Meanwhile, output in Chile, the largest copper producer, fell in December from a year earlier as mine delays are slowing output growth.
In other metals, the head of the nickel mining industry in the Philippines warned that government plans to impose tariffs of up to 10 per cent on nickel ore exports could force local producers out of business.
Aluminum for three-month delivery on the LME fell 0.6 percent to $2,573.50 a tonne as the premium for shipments to Japanese buyers fell, reflecting weak demand and high inventories.
Zinc for three-month delivery fell 1.9% to $3,381 a tonne; Nickel for three-month delivery rose 1.4% to $29,630 a tonne; Three-month lead slipped 0.5% to $2,149 a tonne. Tin for three-month delivery slipped 2% to $29,200 a tonne.
