Copper rises, set for eighth weekly gain on falling LME stocks

Copper prices climbed for the eighth week in a row on Friday, driven by concerns over dwindling stocks in London Metal Exchange warehouses. The benchmark three-month copper on the LME rose 0.22% to $14,314.5 per metric ton, marking a 0.7% increase this week. The most-traded copper contract on the Shanghai Futures Exchange also edged up by 0.4% to 108,820 yuan ($16,191.77) per ton.

Analyst Craig Lang attributed the support to a surge in LME warrant cancellations, indicating metal set for withdrawal from warehouses. This week, the cancellations counterbalanced much of the stock gains from significant inflows the previous week. LME-registered warehouses held 107,050 tons of copper as of Thursday, a drop from 166,775 tons a week earlier.

Withdrawals from LME and Shanghai Futures Exchange warehouses into US warehouses, in anticipation of a potential US tariff on refined copper imports, have raised concerns about availability. Zinc, buoyed by falling warehouse stocks this week, saw a 0.73% rise on the LME but fell 0.3% on the SHFE. Chinese zinc exports have helped alleviate fears of shortages outside China, despite ongoing supply tightness and speculative positioning that continue to support prices.

Analysts from ING noted that LME inventories are low, with treatment charges remaining deeply negative, indicating a tight concentrate supply and pressure on smelter margins. Among LME metals, aluminium dropped 0.08%, lead eased 0.08%, nickel slipped 0.14%, and tin declined 0.12%. For SHFE metals, aluminium added 0.46%, lead gained 1.06%, nickel lost 0.38%, and tin rose 0.61%.