LONDON: Copper prices rose on Wednesday with uncertainty about US tariff policy keeping the premium of US copper futures against the London benchmark elevated, although small inflows into London Metal Exchange stocks eased accumulated tightness.
Three-month copper on the LME added 0.3% at $9,966 a metric ton in official open-outcry trading. The most active US Comex copper futures rose 0.8% to $5.138 a pound, meaning the premium against the LME benchmark was almost 14%. There are expectations the ongoing US investigation into whether to impose new copper import tariffs will take longer while the White House is focused on talks related to “reciprocal” tariffs.
Inside the LME system, LME-registered warehouses in Asia saw inflows of 2,075 tons, daily LME data showed, raising the available inventory to a one-month high of 61,350 tons and driving down the premium for nearby contracts over those with longer maturities. The premium for the LME’s cash copper contracts over the three-month forward contract was last at $81 a ton as it continued to unwind from $320, the highest price since November 2021. That level was hit last week on expectations that China’s producers would deliver more metal this month.
This premium indicates the short-term tightness in the LME system, and more inflows into the warehouses are needed to ease it further as the available LME copper stocks are still down 76% since mid-February after outflows to the US, traders said.
The metal, used in the power and construction industries, started the second half of 2025 by testing the key psychological mark of $10,000 for the first time in three months on Tuesday due to strong manufacturing data in top consumer China.
Goldman Sachs said in a note that it expects China’s 2025 demand for refined copper to rise by 6% and sees upside risks to its August LME copper forecast of $10,050 as the Asian country and the US compete for copper. LME aluminium lost 0.1% to $2,597 a ton as daily LME data showed available stocks rose to 348,000 tons, the highest level since December, after deliveries of 10,000 tons. Zinc and lead rose 0.6% to $2,729 and $2,050, respectively, while tin was steady at $33,650. Nickel gained 0.1% to $15,225.
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