Thus far this year, warehouse inventories under scrutiny by the London Metal Exchange have increased 6.6 percent. Shanghai stockpiles of the commodity last week notched their highest amounts since June 2010.
"Stockpiles are bound to jump at these prices," Citigroup analyst David Thurtell told Bloomberg.
At 5:15 p.m. on Tuesday, copper futures were down 1.97 percent, a 09.15 cent reduction to $4.5460 per pound. Earlier in the day, the industrial metal had struck its highest value ever registered of $4.6575 per pound.
Base metals like copper "are close to their cyclical peaks and positioning is generally long and stretched, making them particularly vulnerable," according to a Tuesday Citigroup report from analysts who include Thurtell.
For week ending February 8, hedge funds increased bets by 14 percent, representing the largest increase in the past 60 days.
Daily exchange figures indicate stockpiles of copper under the purview of the London Metal Exchange increased by as much as 650 tons, a 0.2 percent increase to 402,425 tons.
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