Copper prices rose on Tuesday, staying close to the previous session's record high, after Federal Reserve Governor Christopher Waller said that the latest inflation data was "reassuring."

Three-month copper on the London Metal Exchange (LME) was up 0.8% at $10,970 a metric ton by 1308 GMT.

Copper, used in power and construction, hit a record $11,104.50 on Monday as a rally triggered by short covering created momentum for speculators and funds to bet on a potential long-term shortage of the metal in the transition to green energy.

COMEX copper prices hit a record high of $5.1985 per lb, or $11,460 a ton, on Monday and were up 1.5% at $5.1615 on Tuesday.

"Given the scale of the speculative-driven move in copper, prices are becoming increasingly detached from the near-term fundamentals," said Warren Patterson, head of commodities strategy at ING.

"While it is difficult to call a top in the current market, we do not believe the recent move higher is sustainable."

Demand in top metals consumer China remains soft, with copper inventories in warehouses monitored by the Shanghai Futures Exchange at seasonal record highs and Chinese refined copper output rising despite low treatment charges (TCs), he added.

Meanwhile, LME aluminium added 3.5% to $2,721 a ton, after hitting a three-week high of $2,722. The metal was buoyed by a drop in on-warrant stocks in LME-registered warehouses to a two-week low of 556,100 tons after 82,000 tons of cancellations. 

Rio Tinto declared force majeure on third-party contracts for alumina exports from its refineries in Queensland, Australia.

In other metals, zinc was up 1.6% at $3,164 a ton after hitting $3,165 for its highest since February 2023, lead added 0.3% to $2,346.5, tin gained 0.3% to $34,530 and nickel was steady at $21,600.

(Reporting by Polina Devitt in London Additiontal reporting by Mai Nguyen in Hanoi Editing by David Goodman and Susan Fenton)