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Business Recorder
2 days ago
- Business
- Business Recorder
Copper hits two-month high on supply worries, declining LME stocks
LONDON: Copper prices hit their strongest in two months on Thursday, boosted by speculators after copper broke through technical levels as inventories dwindled in London Metal Exchange warehouses and amid supply worries after a big mine in Congo was suspended. Three-month copper on the London Metal Exchange gained 1.52% to $9,761 per metric ton by 1025 GMT, the strongest since April 1. Copper got added momentum from speculators after it decisively broke above technical levels on the upside, spurring some automatic buy orders, traders said. 'Overall it's quite a good backdrop for copper at this point. You still got this build up of Comex stocks coming through, so there's a squeeze on the LME effectively,' said Dan Smith, managing director at Commodity Market Analytics. U.S. President Donald Trump's move to double tariffs on aluminium and steel to 50% has renewed focus on an ongoing U.S. investigation into potential new copper import duties. Copper inches up; focus on trade developments That has accelerated a flow of copper to the United States, including from LME inventories, as traders seek to profit from higher prices there in anticipation of U.S. tariffs being imposed on the metal. U.S. Comex copper futures climbed 2.5% to $5.01 a lb, boosting the premium over LME copper to $1,321 a ton. LME copper stocks fell to 138,000 tons, the weakest in nearly a year and down by nearly half so far this year, while Comex inventories have shot up by 90% over the past two months. LME data on Thursday also showed that copper stocks were due to continue to drop as holders of 11,625 tons of inventories notified the exchange of pending removals. Copper is also being supported by concern about the recent suspension of the Kakula copper mine in the Democratic Republic of Congo, Smith added. Co-owner Ivanhoe Mines said on Monday it planned to restart a section of the mine later this month. LME tin rose 0.4% to $32,145 a ton after hitting a one-week high on Wednesday on concerns that the resumption of supply from Myanmar's tin-rich Wa State would take longer than previously expected. Among other London metals, LME aluminium added 0.2% to $2,489 a ton and nickel gained 0.8% to $15,520 while zinc was little changed at $2,701 and lead eased 0.3% to $1,984.
Zawya
30-05-2025
- Business
- Zawya
LME copper on track for biggest monthly rise since September on nearby supply tightness
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. 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
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.
