Copper edges up on supply pressures, higher prices curb buying
COPX•Other base metals mostly rise
Among other LME metals, aluminium CMAL3 ticked 0.14% higher, zinc CMZN3 gained 0.54%, lead CMPB3 added 0.42%, nickel CMNI3 advanced 0.27% and tin CMSN3 gained 0.6%.
Elsewhere on SHFE, aluminium SAFcv1 gained 0.58%, zinc SZNcv1 rose 1.61%, lead SPBcv1 gained 1.11%, nickel SNIcv1 gained 1.17% and tin SSNcv1 added 0.29%.
Inventories fall as buying slows
Analysts at Chinese broker Galaxy Futures said that a combination of rising copper prices and high premiums have curbed downstream buying.
Copper inventories in LME-registered MCUSTX-TOTAL and Shanghai-monitored warehouses CU-STX-SGH have fallen rapidly in recent months, pressuring physical supply.
That has helped boost the Yangshan copper premium SMM-CUYP-CN, a gauge of China's import demand, to $115 a ton on Wednesday, a multi-year high.
Prices have also been supported by strong copper shipments into the United States, ahead of a potential U.S. tariff on refined copper, which traders are still awaiting details on.
The LME cash-to-three-month copper premium CMCU0-3 was in a slight backwardation of $4.7 a ton on Wednesday, signalling pressure on near-term supply.
Copper edges up on supply pressures
Copper ticked up on Thursday, supported by ongoing supply and falling inventories, even as higher prices restrained downstream buying and capped further gains.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.28% at $13,846.5 a metric ton by 0300 GMT.
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was little changed at 106,150 yuan ($15,682.02) a ton.
