Copper hits four-week high, on track for seventh straight monthly gain

LONDON: Copper prices hit a four-week high on Friday and were set for a seventh consecutive monthly gain as demand optimism outweighed concerns over stocks piling up.

Benchmark three-month copper on the London Metal Exchange rose 0.4percent to USD13,355.50 a metric ton by 1700 GMT after touching USD13,527, its highest since January 30. The metal used in power and construction hit a record high of USD14,527.50 on January 29 after a wave of speculative buying. Base metals have been also supported by investment demand for hard assets since October, one metals trader said. The first data release after the end of China’s nine-day holiday for the Lunar New Year showed that copper stocks in warehouses registered with the Shanghai Futures Exchange reached a 10-year high, as end-users slowed buying during the holiday and high prices discouraged some downstream demand.

ShFE copper stocks totalled 391,529 metric tons on Friday, up 44percent from two weeks ago. Zinc and aluminium stocks rose 45percent and 20percent, respectively. Even though Chinese copper demand has been subdued since September, the global shift towards renewable energy and emerging demand from data centres are expected to provide support for copper, UBS analysts said in a note.

UBS sees spot copper prices at USD15,000 a ton in 13 months, with global copper consumption rising 2.8percent in 2026 and the market deficit widening to 520,000 tons this year from 203,000 tons in 2025. Among other LME metals, tin jumped 6percent to USD57,435 a ton after rising to USD58,390 earlier in the session, its highest since it hit a peak of USD59,040 on January 29. Tin is up 42percent this year on supply concerns. Aluminium fell 0.6percent to USD3,138.50 a ton.

The discount for the LME cash aluminium contract against the benchmark has narrowed over the past two weeks on concern over potential disruption to supply via the Strait of Hormuz, analysts at Marex said in a note. The discount was last at USD12 a ton on Friday, down from USD36 on February 17. Zinc was down 1.8percent at USD3,318 a ton while lead eased 1.2percent to USD1,961.50 and nickel lost 0.2percent to USD17,655.