Copper prices (HG=F) moved lower as continuously increasing inventories dampened market sentiment, while trading activity remained thin due to the Lunar New Year holiday across much of Asia. London copper futures fell by as much as 1.2%, dropping below $12,800 per ton. Global inventories tracked by the London Metal Exchange (LME) have risen for 11 consecutive days, reaching their highest level since March. Near-record-high copper prices have suppressed industrial demand in China, the world's largest consumer of the metal. A surge in metal shipments to the U.S. ahead of anticipated tariff hikes has now given way to a recovery in exchange inventories and a gradual rebuilding of reserves. On Tuesday, copper stocks in LME-monitored warehouses increased by 4.6% to 221,625 tons, pushing total inventories across the Shanghai, London, and New York exchanges above 1 million tons. LME lead inventories also saw a sharp rise on Tuesday, while nickel stocks hit their highest level since 2018. The LMEX Index, which tracks six major industrial metals traded in London, reached a record high last month, driven by Chinese buying and a weaker U.S. dollar. Since then, the index has retreated as traders await new catalysts, including further details on U.S. import tariffs and the Federal Reserve's monetary policy outlook. BHP Group, the world's largest mining company, reported on Tuesday that its first-half profit surged by more than one-fifth, supported by years of expansion in copper production. This growth offset weaker performance in its iron ore and coking coal businesses, which are heavily exposed to China. Copper now accounts for more than half of the company's profits.