London copper climbs as tight supply, falling oil offer support

SINGAPORE: London copper recouped some of the previous week’s losses on Monday on supply concerns and lower oil prices, following a third straight day of talks aimed at working out a deal to end the US-Israeli war on Iran.

Benchmark three-month copper on the London Metal Exchange was up 0.55% at $14,233 a metric ton by 0326 GMT.

The most-traded copper contract on the Shanghai Futures Exchange edged 0.35% lower to 108,630 yuan ($16,338.78) a ton.

An inflow of stocks into US warehouses ahead of a potential tariff on imports of refined copper has created regional bottlenecks and generated supply fears.

Chile’s copper commission Cochilco on Friday sharply lowered its 2026 output forecast from the world’s largest copper producer.

In China, the world’s biggest consumer, tight supply has the closely watched Yanghshan premium climb to $200 a ton, close to its highest level in over a decade.

The premium shows good demand for imported copper into China, with inventories in SHFE-monitored warehouses down more than 75% in the last six months.

“Underlying fundamentals remain supportive, with signs of tightness still evident across the physical market,” analysts from ING said in a note.

Oil prices fell and South Korea’s technology-heavy KOSPI gained nearly 1.5% as Iranian and Qatari officials held a third straight day of talks aimed at securing a deal to end the war.

Lower oil prices ease could ease the pressure on economic activity and on demand for growth-sensitive industrial metals such as copper.

Concerns around high oil prices helped make October the first month since June that copper prices fell.

Among LME metals, aluminium lost 0.57%, zinc dipped 0.16%, lead ticked 0.08% higher, nickel gained 1.4% and tin gained 1.34%.

On the SHFE, aluminium lost 1.04%, zinc fell 1.18%, lead dipped 0.25%, nickel dropped 0.66% and tin lost 0.44%.