LONDON: Copper rose to a more than two-week high on Tuesday as tariff uncertainty and tightening supply outside the United States supported prices, while aluminium struck a more than four-year peak.
Benchmark three-month copper on the London Metal Exchange was up 1percent at USD13,970 a metric ton in official open outcry activity. It earlier touched USD13,994, its highest since May 14.
Investors are awaiting a recommendation from the US Department of Commerce by the end of the month on possible tariffs on imports of refined copper. The prospect of such a duty helped spur prices last year but ultimately did not materialise.
Panmure Liberum analyst Tom Price said investors he spoke to in the US last week were considering buying US copper equities for the next few weeks. “Because it worked last year, maybe it’ll work this year,” he said. Still, the elevated copper price in no way reflects fundamentals, Price added.
The White House on Monday amended tariffs on some copper, aluminium and iron imports, but the order did not resolve the broader question about refined copper that has driven regional dislocation in the market.
COMEX copper’s premium over LME price widened, encouraging shipments to US warehouses. Aluminium, meanwhile, was up 1percent at USD3,752 a ton, after touching USD3,787.50, its highest since March 2022, as LME inventories dwindled to 335,450 tons, the lowest in almost four years.
The cash LME aluminium contract traded at a USD116.50 per ton premium over the three-month forward, the highest level in at least 17 years, underscoring the shortage of immediately available metal. “Aluminium, I think, is genuinely a tight market,” Price said, pointing to slowing Chinese exports and the loss of supply from the war-hit Middle East.
“But copper and tin just look like speculative playthings at the moment,” he said. Tin added 1.9percent to USD57,725, within striking distance of its all-time peak of USD59,040 set in January.
Zinc firmed 1.3percent to USD3,626, nickel gained 0.4percent to USD19,325 and lead was up 1.2percent at USD2,029.50 after hitting its highest since January 29.
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