Copper edges up as tech rebound, lower oil lift risk appetite
SINGAPORE: Copper gained on Tuesday , lifted by easing oil prices and a tech-stock rebound, while supply tightness in China provided further support. Benchmark three-month copper on the London Metal Exchange was up 0.31% at $13,939 a metric ton by 0300 GMT. The most-traded copper contract on the Shanghai Futures Exchange edged 0.14% higher to 107,700 yuan ($16,140) a ton. Buyers in biggest…
Copper prices rose on Tuesday, driven by a decline in oil prices and a resurgence in tech stocks. The London Metal Exchange's three-month copper benchmark increased by 0.31% to $13,939 per metric ton. In Shanghai, the primary copper contract saw a 0.14% rise to 107,700 yuan per ton.
Chinese buyers are facing record premiums due to shortages in copper concentrate and refined copper stocks. China's October copper concentrate imports decreased by 11% year-over-year, as indicated by customs data. Smelters in China are struggling with negative treatment charges and falling sulfuric acid prices. Copper stocks in monitored warehouses were at only 33,848 tons on Friday, and the Yangshan premium, an indicator of China's demand for imported copper, hit a new record of $230 per ton on Monday.
Wall Street and a global stock index rallied broadly on Monday, as investors reevaluated the post-midterm election tech sell-off. The technology stock rebound and tight nearby spreads surprised short sellers, according to Sandeep Daga, head of research at Metal Intelligence Centre. The LME copper cash-to-three-month spread traded at $175.39 a ton, showing backwardation and tight nearby availability.
Positive sentiment surrounding the de-escalation of the Middle East conflict contributed to lower oil prices, enhancing risk appetite across markets and boosting copper prices. US President Donald Trump has adopted a more conciliatory stance toward Iran since the Republican Party's substantial losses in the midterms. Trump acknowledged that the conflict with Iran played a role in the election outcome.
The Middle East situation dampened prices for metals reliant on growth, such as copper, by casting doubt on the global economic outlook.
Among LME metals, aluminium fell 0.31%, zinc increased by 0.51%, lead rose by 0.13%, nickel climbed 0.18%, and tin gained 0.10%. On the Shanghai Futures Exchange, aluminium declined by 1.06%, zinc dropped by 0.18%, lead lost 0.4%, nickel nudged up 0.14%, and tin increased by 0.11%.
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