Copper eases from two-week high as investors pause after rally

Copper slipped on Wednesday as investors locked in profit after prices touched a two-week high, while uncertaintyarounda US tariff on the metal limited losses.

The benchmark three-month copper on the London Metal Exchange dropped 0.43% to $13,980.50 a metric ton as of 0245 GMT. It touched a more-than two-week high and surged past the $14,000 mark at $14,056 on Tuesday.

The most-active copper contract on the Shanghai Futures Exchange gained 0.78% to 106,820 yuan ($15,785.90) a ton.

That is still lower than the three-week high level of 107,420 yuan set in evening trade.

Traders said prices continued to find support from uncertainty over US copper tariffs as a June 30 deadline approaches.

By that date, the US commerce secretary is due to provide President Donald Trump with an update on domestic copper markets, including refined copper and refining capacity.

Trump signed a proclamation this week amending tariffs on some steel, aluminium and copper imports, though traders said the latest changes had little direct impact on refined copper.

The move nevertheless kept tariff risk in focus for a market already distorted by expectations of possible US action. Signs of tighter nearby supply on the LME also supported sentiment, as a widening premium of Comex copper against that on the LME raised dislocation risks.

The LME cash-to-three-month copper discount narrowed to just around $4 a ton on June 3 from $77 on May 19, while cancelled warrants rose, suggesting more metal was being prepared for withdrawal.

Fresh hostilities in the Middle East remained a concern in the background as diplomacy between the US and Iran yielded little progress and the Strait of Hormuz remained shut.

A stronger-than-expected US job openings reading also weighed on metals, supporting the dollar and reducing expectations of near-term US rate cuts. Elsewhere on the LME, aluminium nudged 0.05% lower, zinc dipped 0.19%, lead dropped 0.32%, nickel lost 0.64% and tin was down 0.20%.

Among other metals on SHFE, aluminium added 0.22%, zinc gained 1.27%, lead rose 0.24%, nickel lost 0.98% and tin climbed 1.39%.