Copper, lead prices drop on growing inventories

Base metals followed precious metals and oil prices lower on Tuesday ahead of Wednesday’s interest rate decision from the US Federal Reserve, which is not seen as quite as likely now to cut rates as it has been in the run-up to the Fed’s meeting this week.

In New York, December copper dropped 4 cents to $3.48 per pound, while three-month contracts on the London Metal Exchange fell $85 to $7,760 per tonne after going as low as $7,666 per tonne earlier in the session.

LME stockpiles of copper grew by 3,250 tonnes more to 160,750 tonnes.

Lead was also lower, falling $57 to $3,583 in London as stockpiles of the metal used in battery manufacture grew to about 39,000 tonnes, a gain of 90 percent since September.

Among other base metals, aluminium dropped $1 to $2,524 per tonne while nickel fell to $31,500 per tonne after trading at $31,550 per tonne on Monday.

Zinc prices fell by $60 to $2,845 per tonne and tin traded around $16,650/$16,700 per tonne, down from $16,850 per tonne on Monday.