Copper falls on China and global recession worries.

Copper prices dropped on Tuesday as investors were dismayed that China has not relaxed its tight COVID-19 policy, and the global economic slowdown dampened demand for metals.

By 10:20 GMT, the three-month copper contract (CMCU3) on the London Metal Exchange (LME) had fallen 1.3% to $7,462 per tonne.

Since its record high in March, copper prices have fallen by 30%, but since the end of August, they have been relatively stable between $7,200 and $8,000.

We're still seeing a steady increase in the macro headwinds. "The markets have a lot of hurdles to jump in the next months, and now the currency is stronger, so that's an additional obstacle," said independent consultant Robin Bihar.

Since there was no talk of abandoning the zero-COVID strategy, "the market was expecting for some good inputs and so far, it hasn't come from China."

At the Communist Party Congress, Chinese President Xi Jinping reaffirmed China's zero-COVID policy. Some investors believed China would loosen its restrictions on the market, such as lockdowns and travel restrictions.

SCFcv1, the most actively traded contract for copper in November on the Shanghai Futures Exchange (ShFE), ended the day 0.9% lower at 62,650 yuan ($8,714.82) a tonne.

After reaching a 13-year high of 1,950 yuan per tonne on Friday, the SCFc1 premium for the Shanghai copper front-month November contract over the second-month December contract SCFc2 dropped to 870 yuan per tonne on Monday.

On October 14, there was a significant increase in ShFE copper inventories CU-STX-SGH, yet, restricted overall supply in China continued to support and cushion prices from steep losses.

The demand for copper in China is forecast to be strong. According to Jinrui Futures, the tight spot pattern will likely last until about mid-November.

LME prices CMAL3 dropped 0.8% to $2,211.50 per tonne as more aluminium entered LME warehouses.

According to LME figures, aluminium stocks have increased by 46% this month.

Nickel rose 0.2% to $21,575 per tonne on the LME, while tin rose 0.5% to $19,740 per tonne. Zinc down 0.1% to $2,864.50 per tonne, and lead fell 0.1% to $2,024.50.