Copper range-bound as US inventories climb to record level

Copper prices were range-bound on Thursday after inventories in US Comex-approved warehouses rose above 500,000 metric tons for the first time amid lingering tariff concerns.

The most-active copper contract on the Shanghai Futures Exchange closed daytime trading nudging 0.28% higher to 100,700 yuan ($14,463.61) a metric ton.

Meanwhile, the benchmark three-month copper on the London Metal Exchange ticked 0.01% higher to $12,811 a ton as of 0741 GMT. Copper stocks on the United States Comex exchange rose to 554,904 short tons, or 503,400 metric tons, as of January 20.

The Comex copper price is on the decline, with its arbitrage against the LME copper fading.

The LME copper stock has been rising in the US warehouse system in New Orleans.

LME copper has flipped above Comex, sending the metal back to LME warehouses and lifting stocks, and the market is easing from tight to more balanced conditions, reducing the urgency behind the rally, analysts at Sucden Financials said in a note.

Copper was still supported by supply concerns due to mine disruptions and tariff-driven inflows to the US, but demand amid high prices has been in question.

US President Donald Trump, meanwhile, said on Wednesday that he would back down from Greenland-related tariffs on European allies, a de-escalation that pulled back gold from record peak and sent US equities higher.

Elsewhere, among SHFE base metals, aluminium was up 0.59%, zinc rose 0.85%, lead gained 0.38%, nickel climbed 1.15% and tin went up 1.69%.

Among other LME metals, aluminium added 0.30%, zinc gained 0.61%, lead rose 0.35%, nickel ticked 0.05% higher and tin drifted 0.81% lower.