Copper climbs on falling inventories and easing demand fears

Elsewhere, zinc CMZN3 slipped 0.1% to $3,641 a ton after climbing to a four-year high of $3,703.50 on worries over supplies on the LME.

This was due to three large holdings of cash contracts and warrants 0#LME-WHC that also created large premiums for nearby zinc contracts against longer-dated forwards. This was reinforced by a large short maturing on zinc futures this month #LME-FBR.

The premium, or backwardation, for cash zinc over the three-month forward is near levels last seen in December.

LME zinc stocks have dropped to 99,285 tons 0#MZNSTX-LOC, down 25% since the middle of June, with cancelled warrants — metal earmarked for delivery — at 26% also adding to the unease.

In other metals, aluminium CMAL3 gained 1.3% to $3,225 a ton, lead CMPB3 retreated 0.6% to $1,867, tin added 0.5% to $55,550 and nickel CMNI3 fell 1.2% to $17,045.

Copper prices rose to their highest in more than a week on Monday as lower oil prices alleviated anxiety about economic growth and demand while the market also focused on dwindling inventories.

Benchmark copper CMCU3 on the London Metal Exchange was up 0.6% at $13,868 a metric ton at 1605 GMT, after touching $13,900 a ton for its highest since July 22.

Traders said the drop in oil prices after U.S. President Donald Trump called off a fresh attack on Iran as he sought a deal to curb Tehran's nuclear ambitions has also eased concern about price pressures and boosted sentiment.

"The markets continue to be headline-driven as we start the week, with energy markets serving as the primary focal point," Britannia Global Markets said in a note.

"The underlying fundamental picture (for copper) looks to remain supportive. Inventories in both China and London Metal Exchange warehouses are in a state of depletion."