Copper edges up on thinning stocks, eyes 10-week winning streak
XLB•Other metals were mixed
Aluminium CMAL3 slipped 0.5% to $3,295 but was still on track to end the week 1.6% higher. The cash-to-three month aluminium spread CMAL0-3 has flipped into a slight backwardation, signalling tightening availability.
"We remain neutral to constructive near-term given low visible inventories and a still-tight physical market," Citi said in a note on aluminium, adding that the balance would become more challenging over the next six–12 months as ex-China supply growth accelerates.
Zinc CMZN3 added 0.5% to $3,932.50, with the three-month spread CMZN0-3 still in steep backwardation at $140 a ton.
Lead CMPB3 was up 0.5% at $1,912.50 after orders to withdraw 8,450 tons of stock MPBSTX-TOTAL, while nickel CMNI3 nudged up 0.2% to $16,825 and tin CMSN3 shed 0.4% to $54,700.
Copper rises as inventories tighten
Sept. 4 (Reuters) - Copper ticked higher on Friday and was set to post a 10th straight weekly rise, as thinning inventories outside the U.S. and a soft dollar lent support.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.3% at $14,373 a metric ton as of 0900 GMT, moving closer to its all-time peak of $14,527.50.
The metal was on course for a 0.5% gain this week. It has risen every week since the week beginning June 29 as ballooning inventories in the U.S. HG-STX-COMEX in anticipation of possible import tariffs tighten the market elsewhere.
U.S. copper imports in July hit their highest level on record, while Shanghai Futures Exchange data on Friday showed copper inventories CU-STX-SGH fell 13% from last week to 63,000 tons, the lowest since January 2024.
LME copper stocks MCUSTX-TOTAL dipped by 475 tons, and there were orders to withdraw another 1,550 tons.
The tariff uncertainty should continue to support copper, although already elevated prices are "likely to limit near-term gains," BMI, a unit of Fitch Solutions, said in a note.
