Copper climbs to over two-week high amid tariff uncertainty, Iran risks
- The benchmark three-month copper on the London Metal Exchange was up 0.32% at $13,876.50 a metric ton
Copper rose to a more than two-week high on Tuesday as unresolved US tariff uncertainty and subsequent tightening supply outside the United States supported the market, while Middle East peace talks remained in focus.
The benchmark three-month copper on the London Metal Exchange was up 0.32% at $13,876.50 a metric ton as of 0258 GMT, reaching $13,924, its highest since May 15.
The most-traded copper contract on the Shanghai Futures Exchange climbed 1.32% to 106,050 yuan ($15,682.77) a ton.
The White House on Monday amended tariffs on some copper, aluminium and iron imports andlowered duties on some agricultural and industrial equipment, though the order did not resolve the broader copper tariff question that has driven regional dislocation in the market.
“Tariff uncertainty is likely to support market sentiment,” analysts at ING Economics said. COMEX copper’s premium over LME widened, continuing to encourage shipment into US warehouses.
Meanwhile, the discount for LME cash copper against three-month also narrowed, indicating tightening near-term supply.
The Middle East remained in focus after Lebanon announced a partial ceasefire between Hezbollah and Israel, though fighting continued in southern Lebanon.
The limited de-escalation has not resolved the broader US-Iran conflict, with Iranian state media saying Tehran is halting indirect peace talks with Washington and a senior Iranian commander threatening to disrupt the Bab el-Mandeb Strait.
The conflict has kept energy risks elevated for metals, while aluminium is more directly exposed as the Gulf accounts for around 9% of global output.
LME aluminium rose 0.91% to $3,750 after touching an over four-year high at $3,775, and Shanghai aluminium rose 0.88% to 24,530 yuan.
Tin also rallied. London tin rose 1.15%, and its Shanghai peer surged 3.45%.
Among other metals on the LME, zinc added 0.21%, lead ticked 0.12% higher, and nickel dipped 0.34%.
Elsewhere on SHFE, zinc rose 0.36%, lead dipped 0.18% and nickel gained 0.54%.
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