Copper hits record high on weak supply outside US
LONDON: Copper prices extended their rally on Tuesday, hitting a record peak on speculative buying on the back of tight supply outside of the U.S. and weak mine output. Three-month copper on the London Metal Exchange gained 1.3% to $14,703 a metric ton in official open-outcry trading, surpassing the previous record set on Monday. LME copper has gained 18% this year, largely due to a large flow of…
Copper prices reached a record high of $14,703 per metric ton on Tuesday, driven by a combination of weak supply outside the United States and weak mine output. The London Metal Exchange's three-month copper saw an increase of 1.3%, surpassing the previous record set on Monday. Copper prices have risen 18% this year, thanks to a large flow of metal heading to the U.S. in anticipation of potential tariffs on refined copper.
Analyst Alice Fox from Macquarie attributed the gains to falling inventories outside the U.S., including in China. The Shanghai Futures Exchange's most-traded copper contract surged 1.5% to 110,890 yuan, its highest since January 30. Meanwhile, the U.S. saw its COMEX inventories swell to a record high of 766,795 short tons. Copper stocks in LME-registered warehouses have dropped nearly 40% since late May, while SHFE inventories are down 85% from a mid-March peak, marking the lowest level since January 2024.
Zinc also saw a rally, with LME zinc up 0.5% to $4,002 per ton. Other metals like aluminium, lead, nickel, and tin also experienced minor gains.
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