Copper hits a new record high as supply concern outweighs dollar strength

BEIJING: Copper prices rose on Wednesday to a new record high as lingering supply concerns outweighed a stronger dollar, while tin hit a record high driven by a speculative buying spree amid growing geopolitical uncertainty.

The most-traded copper contract on the Shanghai Futures Exchange closed morning trade 1.68% higher at 104,970 yuan ($15,046.44) per metric ton after hitting an all-time high at 105,650 yuan earlier in the session.

Benchmark three-month copper on the London Metal Exchange advanced 1.55% to $13,367.5 per ton by 0340 GMT, retreating slightly from a new record high of $13,400 a ton.

Copper’s price resilience has been underpinned by disruptions at mines, worries about deficits this year and a flow of copper to the US ahead of potential tariffs that are tightening supply elsewhere. US President Donald Trump on Tuesday urged Iranians to keep protesting, saying help is on the way.

That stoked mounting concerns over geopolitical risks, propelling some investors to rush to commodities with healthy fundamentals such as copper and tin, according to analysts.

However a stronger dollar, which makes commodities priced in the greenback more expensive for buyers using other currencies, capped price gains.

Meanwhile, tin prices in both Shanghai and London bourses hit record highs. SHFE tin surged by up to 8% to hit the upper price limit at 413,170 yuan while LME tin rallied more than 5% to $52,495.

SHFE aluminium added 1.12%, nickel advanced 1.47%, lead ticked up 0.2% and zinc rose 1.05%.

Among other LME metals, aluminium added 0.75%, nickel gained 1.83%, lead nudged up 0.07% and zinc rose 1.22%.