London copper climbs as tight supply, falling oil offer support

London copper prices rebounded on Monday, buoyed by concerns over tight supply and declining oil prices, following three days of negotiations to end the US-Israeli conflict in Iran. On Monday morning, the benchmark three-month copper contract on the London Metal Exchange climbed 0.55% to $14,233 per metric ton. The Shanghai Futures Exchange's most-traded copper contract slipped 0.35% to 108,630 yuan ($16,338.78) per ton.

A surge in inventories into U.S. warehouses ahead of a potential tariff on refined copper imports has created regional supply bottlenecks and heightened fears of a supply crunch. Chile's copper commission, Cochilco, reduced its 2026 production forecast for the world's largest copper producer. In China, the closely-watched Yanghshan premium, which measures demand for imported copper, surged to $200 per ton, nearing a decade-high.

Analysts from ING noted that "underlying fundamentals remain supportive, with signs of tightness still evident across the physical market." Declining oil prices and a rally in South Korea's benchmark KOSPI, driven by ongoing talks between Iranian and Qatari officials, also contributed to the copper price recovery. Copper prices had slipped in October for the first time since June, as high oil prices added pressure on economic activity and growth-sensitive industrial metals.

On the London Metal Exchange, aluminum prices fell 0.57%, zinc dipped 0.16%, lead increased by 0.08%, nickel rose 1.4%, and tin gained 1.34%. On the Shanghai Futures Exchange, aluminum prices dropped 1.04%, zinc fell 1.18%, lead declined 0.25%, nickel decreased 0.66%, and tin slipped 0.44%.