Concerns about low stocks set copper on track for 3% monthly gain
XLB•Other LME metals mostly mixed
Among other LME metals, aluminium CMAL3 lost 0.8% to $3,170.50, although the metal is still up 3% this month due to worries about shipments from the Gulf region amid the Iran war.
"Supply conditions are improving, particularly as Middle Eastern production recovers and Chinese exports remain elevated, but the market is still expected to remain in deficit," Manthey said.
LME zinc CMZN3 was steady at $3,620.50, lead CMPB3 fell 0.2% to $1,892, tin CMSN3 gained 0.3% to $54,980 and nickel CMNI3 added 0.1% to $17,290.
Copper rises on low inventories and stronger risk appetite
Copper prices rose on Friday and were on track to have risen 3% in July following increased risk appetite in equity markets and worries about a lack of visible stocks outside the U.S.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.1% at $13,821.50 a metric ton by 0954 GMT after hitting $13,883, its highest level since July 22.
"Copper enters August with supportive fundamentals," said ING commodities strategist Ewa Manthey. "The market is still facing a supply deficit and limited inventory buffers outside the U.S., leaving prices vulnerable to any further disruptions or signs of stronger demand."
Available copper stocks in the LME-registered warehouses MCUSTX-TOTAL fell 50% in July as large volumes were marked as being prepared for delivery out and are currently at 101,650 tons, the lowest since mid-January.
