Industrial metal prices fell amid weak trading activity during the Lunar New Year celebrations in a number of Asian countries. Additional pressure on the market is being exerted by the rapid increase in warehouse reserves and continuing uncertainty surrounding possible US import duties, Bloomberg notes.

Copper futures lost 0.8% and fell below $12,800 per ton. Aluminum fell 0.6% to $3,037.50 per ton. Zinc and nickel also ended the session in negative territory. Trading is taking place amid low liquidity: many Asian markets are closed for holidays, and US markets will not resume trading until Tuesday after Presidents' Day.

Copper inventories tracked by the London Metal Exchange and trading platforms in Shanghai and New York exceeded 1 million tons, the highest level in more than 20 years. Analysts attribute this situation to a combination of factors: record high prices have reduced industrial demand in China, and market participants had previously been actively increasing supplies to the US in anticipation of possible tariffs, which temporarily redistributed metal flows.