Copper prices softened on Monday due to a firmer dollar ​and as the ⁠market focused on rising inventories and weak demand prospects in holiday-thinned trading volumes.

China's ‌Lunar New Year holiday this week and a public holiday in the United States mean low ​volumes and possibly volatile moves due to settlement or rollover of maturing contracts on the London Metal ​Exchange on ​Wednesday, traders said.

Benchmark copper on the LME was down 0.1% at $12,870 a metric ton at 1054 GMT. It has dropped more than 10% since hitting ⁠a record high $14,527.50 a ton two weeks ago.

"With many Asian desks sidelined, liquidity will be patchy with most participants likely to be content to wait for clearer direction from U.S. rates and a potential Chinese demand pulse in March’s post holiday ​trade," Britannia Global ‌markets said ⁠in a note.

A higher ⁠U.S. currency makes dollar-priced metals more expensive for holders of other currencies, which could potentially subdue ​demand and undermine prices.

Copper stocks in LME approved warehouses ‌at 211,850 tons are up more than 50% ⁠since January 9.

Ample stocks have created a discount for the cash contract over the three-mont forward on the LME . It closed at a one-year high of $106 a ton on Friday.

In warehouses monitored by the Shanghai Futures Exchange, copper stocks at 272,475 tons have climbed 180% since December 19.

Elsewhere zinc prices were down 0.9% at $3,308 a ton . They have fallen 8% since hitting $3,575.50 on January 29, the highest since August 2022.

Zinc is also under pressure from higher inventories in ‌ShFE warehouses, which at 87,025 have risen 33% since January 30.

"Ex-China ⁠market tightness that supported prices...has been resolved for now, ​as China turned to a net exporter of zinc in November/December, concentrate availability improved, and ex-China refined zinc production has risen," analysts at Goldman Sachs said in a note.

In other ​metals, aluminium ‌was up 0.1% at $3,080, lead slipped 0.3% to $1,954, tin eased ⁠0.7% to $46,380 and nickel rose 0.1% ​to $17,005 a ton.

(Reporting by Pratima Desai; editing by Ronojoy Mazumdar)