Latest news with #COMEX-owned
Business Recorder
5 days ago
- Business
- Business Recorder
Copper on track for biggest monthly rise since September
LONDON: Copper prices fell on Friday under pressure from a stronger dollar, but remained on course for their biggest monthly rise in eight months due to tighter nearby supply, highlighted by the premium for nearby copper contracts against those further out. Benchmark three-month copper on the London Metal Exchange (LME) lost 0.6% to $9,510 a metric ton by 1602 GMT. The contract is up 4.2% so far in May, on track for its strongest month since September. The price advance is supported by declining stocks in LME-registered warehouses, down 45% since mid-February to 149,875 tons, the lowest in almost a year. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 7.2% this week. As Washington continues an investigation into whether to impose new US copper import tariffs, the premium of COMEX copper against the LME benchmark remains elevated, attracting more metal into COMEX-owned warehouses. 'The LME copper is facing a bit of a squeeze because the COMEX stocks keep going up and the LME stocks are declining,' said Dan Smith, managing director at Commodity Market Analytics. The spread between the cash LME and the three-month copper contract closed on Thursday at a premium of $51.6 a ton, highest since November 2022, indicating worries about nearby supply, partly due to a large holding of copper warrants and cash contracts.
Business Recorder
7 days ago
- Business
- Business Recorder
LME copper on track for biggest monthly rise since September on nearby supply tightness
LONDON: Copper prices in London were little changed on Friday, but on course for their biggest monthly rise in eight months due to tighter nearby supply, highlighted by the premium for nearby copper contracts against those further out. Benchmark three-month copper on the London Metal Exchange (LME) was steady at $9,570 a metric ton by 1006 GMT. The contract is up 4.8% so far in May, on track for its strongest month since September. The price advance is supported by declining stocks in LME-registered warehouses, down 45% since mid-February to 149,875 tons, the lowest in almost a year. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 7.2% this week. As Washington continues an investigation into whether to impose new U.S. copper import tariffs, the premium of COMEX copper against the LME benchmark remains elevated, attracting more metal into COMEX-owned warehouses. 'The LME copper is facing a bit of a squeeze because the COMEX stocks keep going up and the LME stocks are declining,' said Dan Smith, managing director at Commodity Market Analytics. Copper retreats on tariff uncertainty and firmer dollar The spread between the cash LME and the three-month copper contract closed on Thursday at a premium of $51.6 a ton, highest since November 2022, indicating worries about nearby supply. The premium, a market structure known as backwardation, also reflects uncertainty about the supply from Kamoa-Kakula copper mine in the Democratic Republic of Congo, the biggest copper producer in Africa and one of the world's largest, Smith added. As a group, industrial metals were under pressure as the dollar strengthened and market optimism faded following a court ruling that reinstated the broad tariffs imposed by U.S. President Donald Trump. China's futures markets have closed until June 3 for the Dragon Boat holiday, reducing the overall trade volumes. As to the demand side, the focus is on the official purchasing managers' index (PMI) in top metals consumer China, due on Saturday. China's factory activity likely contracted for a second month in May, a Reuters poll showed. LME aluminium fell 0.3% to $2,443.50 a ton, zinc slipped 0.4% to $2,663.50, lead lost 0.2% to $1,958, tin dropped 1.8% to $30,655, while nickel rose 0.2% to $15,395.
Business Recorder
24-05-2025
- Business
- Business Recorder
Copper dips on Trump's tariff threats
LONDON: Base metal prices ticked lower on Friday after US President Donald Trump said he would impose 50% tariffs on goods from the European Union, but copper recovered on worries about problems at a big mine in Congo. Benchmark three-month copper on the London Metal Exchange (LME) slipped 0.4% to $9,561 a metric ton in official open-outcry trading. Copper erased earlier gains and went into the red along with other financial markets after Trump said he was recommending the 50% duties on the EU take effect on June 1. 'It's a big macro thing with the new Trump tariffs driving things. Is it one step forward and two steps back?', said Dan Smith, managing director at Commodity Market Analytics. Smith was referring to a 90-day tariff truce agreed by Washington and Beijing earlier this month to pause their trade war, which has helped copper gain 5% so far this month. LME copper moved back into positive territory by 1305 GMT, however, rising 0.3% to $9,532. Smith attributed the move to news from Chinese miner Zijin about pausing operations in its Kamoa-Kakula copper mine in the Democratic Republic of Congo due to tremors. Zijin warned that the problems may have an 'adverse impact' on achieving planned production this year of 520,000 to 580,000 tons. 'It sounds fairly bad and obviously it's a pretty big mine,' Smith said. Co-owner Ivanhoe Mines said on Tuesday it had suspended some operations at the mine, but it did not refer to weaker output. Providing further support, the dollar headed for its first weekly drop against a range of currencies in five weeks. A weaker US currency makes dollar-priced metals more attractive for buyers using other currencies. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9% to 98,671 tons this week, while stocks in the LME-registered warehouses lost 8% to 164,725 amid continuing inflows into the COMEX-owned warehouses. The COMEX inventories are up 3% to 174,607 this week. Meanwhile, LME aluminium was little changed in official activity at $2,457 a ton; zinc slipped 0.4% to $2,688, nickel lost 0.6% to $15,400, lead eased 1% to $1,950 while tin gained 0.5% to $32,525.
Business Recorder
23-05-2025
- Business
- Business Recorder
Weaker dollar, improved risk appetite drive copper prices up
LONDON: Prices for copper and other base metals rose on Friday supported by a weaker dollar and improved outlook for global demand amid easing trade tensions. Benchmark three-month copper on the London Metal Exchange (LME) added 0.8% to $9,573.50 a metric ton by 1003 GMT. The growth-dependent metal is up 5% so far this month, supported by the 90-day tariff truce agreed by Washington and Beijing earlier this month to pause their trade war and roll back a majority of the duties levied on each other's goods since April. 'We are in the situation where the U.S. continues to perform unexpectedly well, trade tensions are easing and recent macro data in China was pretty good,' said Dan Smith, managing director at Commodity Market Analytics. 'All of this is good for the risk appetite in base metals for now.' Providing further support, the dollar headed for its first weekly drop against a range of currencies in five weeks. A weaker U.S. currency makes dollar-priced metals more attractive for buyers using other currencies. Copper touches three-week low as economic uncertainty lingers Supporting the importing power in top metals consumer China, the onshore yuan finished the domestic session at its strongest since November. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9% to 98,671 tons this week, while stocks in the LME-registered warehouses lost 8% to 164,725 amid continuing inflows into the COMEX-owned warehouses. The COMEX inventories are up 3% to 174,607 this week. In the LME system, the spread between the cash against the three-month copper contract remains at a premium, indicating some tightness for the nearby supply due to the outflows from the stocks. The premium, known as backwardation, was last at $16 per ton. It is a healthy level, signalling that there is no major squeeze, when compared to $49, its highest in 2-1/2 years, hit in early May, Smith said. Meanwhile, LME aluminium rose 0.5% to $2,467.50 a ton; zinc and nickel added 0.2% to $2,701.50 and $15,525, respectively; while lead and tin gained 0.9% to $1,987 and $32,650, respectively.
Business Recorder
14-05-2025
- Business
- Business Recorder
Base metals firm on easing US-China trade tensions and weaker dollar
Copper prices rose on Wednesday as a 90-day pause on most of the tit-for-tat tariffs agreed by Beijing and Washington raised investors' confidence a global recession can be averted and demand will continue for growth-dependent metals. Benchmark copper on the London Metal Exchange (LME) was up 0.2% at $9,618 a metric ton by 0955 GMT after hitting $9,642, for its highest since April 3. 'Investors have rotated away from safe-havens like gold back into the industrial space,' Panmure Liberum analyst Tom Price said. 'However, they are not re-engaging the market in a vigorous way at this early stage but stay very cautious at the moment. They are wondering what (U.S. President Donald) Trump is going to do next,' he added. Providing further support, the U.S. dollar extended losses following its biggest decline in more than three weeks overnight after weaker-than-expected U.S. consumer inflation data bolstered the case for Federal Reserve easing. The weaker U.S. currency makes dollar-priced metals more affordable for other currency holders, while prospects of lower interest rates support the demand outlook for industrial metals. Copper steady ahead of US-China trade talks, focus on tighter nearby supply The market focus remains on a probe into potential new tariffs on copper imports that the U.S. has been conducting since February. As a result, the premium of COMEX copper futures over the LME benchmark is elevated and deliveries have been made to the COMEX copper stocks. The premium reached a peak of 18% in late March, and has fallen to about 10% with copper inventories at the COMEX-owned warehouses rising 77% since end-February to 165,112 tons. 'This reflects front-loading as well as tariff timing uncertainty,' Morgan Stanley said in a note. It estimates the U.S. has imported an extra 180,000 tons of copper over the last seven weeks, of which only 65,000 haveshown up in the COMEX inventory so far, 'with more to come, leaving a tariff-free buffer of metal'. Among other metals, aluminium rose 1.3% to $2,521.5 a ton, zinc added 1.9% to $2,754, lead gained 0.2% to $1,992.5, tin climbed 0.4% to $32,805 and nickel was up 0.9% to $15,860.
