Copper prices rose on Tuesday, buoyed by decades-low supplies and an extreme shortage of readily available metal in exchange warehouses.
Three-month copper on the London Metal Exchange rose 1.3pc to $10,325 a tonne by 0531 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange was almost unchanged at 75,620 yuan ($11,794.25) a tonne.
LME cash copper was at a record high $1,103.50-a-tonne premium over the three-month contract, compared to $55 just a week earlier, indicating tight nearby inventories.
"There seems to really be no copper around. (Trading) volumes have been monster, but with spreads this tight, some people are too frightened to get involved as there is too much at stake," said commodities broker Anna Stablum of Marex Spectron.
LME copper may revisit May 10 high of $10,747.50
"For once we are actually discounting macro here and just looking at micro."
On-warrant LME copper inventories plunged to 14,150 tonnes on Friday, their lowest since 1998, before rising to 21,050 tonnes, with one entity controlling between 50pc and 79pc of LME copper warrants, LME data showed.
A weaker dollar also made greenback-priced metals cheaper to holders of other currencies, and a Peruvian community threatening to block a key mining road used by MMG's Las Bambas copper mine also supported prices.
Fundamentals
One party held more than 90pc of available LME lead stocks and short-term futures.
LME aluminium rose 0.6pc to $3,186.50 a tonne, nickel advanced 0.7pc to $20,140 a tonne and zinc increased 0.9pc to $3,730 a tonne.
ShFE lead rose as much as 2.7pc to 15,990 yuan a tonne, its highest since Aug. 4, nickel advanced 0.5pc to 150,350 yuan a tonne and tin increased 1.3pc to 289,650 yuan a tonne.
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