Copper prices linger near multi-month highs on supply crunch, US tariff jitters

SINGAPORE: Copper on the London Metal Exchange and the Shanghai Futures Exchange held near the highest levels since late March, driven by concerns over tight regional supply and increased shipments to the US as traders rush to beat potential import tariffs.

Three-month copper on the LME was flat at $10,005 per metric ton, as of 0103 GMT, but hovered near its highest point since March 26.

The most-traded copper contract on the SHFE gained 0.27% to 80,840 yuan ($11,285.77), its strongest level since March 27.

“The United States is busy with trade talks with its major trade partners, and may deal with copper import tariff later, and this has been viewed as extra time by the traders to move copper to the United States when the prices over there are much higher,” said a Shanghai-based metals analyst from a futures company.

US Comex copper futures rose 2% to $5.199 a pound on Wednesday, and the premium against the LME copper futures was 14%.

Total copper stocks in LME-registered warehouses remained near their lowest levels since August 2023, despite a slight rebound over two days.

Available inventories have dropped 76% since mid-February, as cargoes were rushed to the United States following its investigation into copper imports and the prospect of new tariffs.

Copper edges up as stronger yuan offsets tariff uncertainty

SHFE lead gained 0.7% to 17,290 yuan a ton, zinc was up 0.7% at 22,370 yuan, nickel advanced 0.6% to 121,550 yuan and aluminium edged 0.2% higher to 20,710 yuan.

LME lead gained 0.2% to $2,064.5 a ton, nickel inched up 0.15% to $15,325, tin was up 0.15% at $33,765, and aluminium nudged 0.1% higher to $2,622.5, while zinc eased 0.11% to $2,754.5.