Copper hits two-week high on demand optimism after US tariffs struck down

Copper prices rose to two-week highs on Wednesday as growth and demand optimism dominated the mood after the U.S. Supreme Court ruled against President Donald Trump’s sweeping reciprocal tariffs.

Benchmark copper on the London Metal Exchange was up 0.6% at $13,241 a metric ton at 1100 GMT after rising to $13,320 earlier in the session, the highest since February 12.

The U.S. Supreme Court last week struck down tariffs imposed by Trump that he pursued under a law meant for use in national emergencies.

“Asian markets are benefiting from the Supreme Court’s tariff ruling, which replaced higher reciprocal tariffs with lower Section 122 rates, around 10%,” said BNP Paribas commodities strategist David Wilson.

“This shift has driven renewed interest in industrial metals, especially in China after the Lunar New Year holiday.”

READ MORE: Copper climbs as Chinese traders return from holiday

Expectations of stronger demand in top consumer China are highlighted by the Yangshan copper premium SMM-CUYP-CN, a gauge of China’s appetite for importing copper. It jumped to $53 a ton on Tuesday from $33 a ton on February 13, the day before the Chinese holiday started.

However, traders tracking inventories remain wary.

Copper stocks in warehouses registered with the LME at 249,650 tons are at their highest since March 7 and up more than 80% since January 9.

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

Copper stocks on the LME, ShFE and on the U.S. Comex exchange combined have exceeded a million ton for the first time in more than two decades.

Elsewhere, tin hit $53,100, the highest in nearly four weeks on supply concerns from Indonesia, where the government is studying a plan to ban exports of more raw materials including tin.

Tin was last up 5.4% at $52,995. Traders said tin’s moves on the LME are often volatile due to an illiquid market.

In other metals, aluminium advanced 0.9% to $3,121, zinc firmed 0.2% to $3,387, lead added 0.6% to $1,966 and nickel fell 0.9% to $17,755.