Copper falls, heads for weekly dip as Mideast tensions weigh on demand outlook
XLB•Copper tracks equities lower on demand concerns
July 17 (Reuters) - Copper prices fell on Friday, tracking equity markets lower as escalating tensions in the Middle East war spurred inflation concerns and cast a shadow over the demand outlook for industrial metals.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 1.3% at $13,419.50 a metric ton as of 0930 GMT, after edging up 0.1% on Thursday. The metal widely used in power, construction and manufacturing was on course to end the week down 0.5%.
The escalation in fighting between the U.S. and Iran has disrupted shipments through the Strait of Hormuz, leaving oil prices up 12.7% so far this week and increasing fuel costs for metal producers. O/R
U.S. stock market futures meanwhile slid on renewed attacks in the Gulf and a selloff in chip stocks, while President Donald Trump's accusations that China meddled in U.S. elections fanned trade tensions between the world's two biggest economies.
Inventories remain tight while other metals also ease
Tight inventories were nonetheless keeping a floor under prices. LME copper stocks MCUSTX-TOTA slipped below 300,000 tons to 296,625 tons, the lowest since March, and almost 56% are cancelled warrants unavailable to the market.
In China, Shanghai Futures Exchange copper stocks CU-STX-SGH fell 20.3% from last week to 79,909 tons, the lowest since August. The Yangshan premium SMM-CUYP-CN, a gauge of Chinese appetite for copper imports, remained at $95 a ton on Thursday, its highest since May 2025.
Elsewhere, aluminium CMAL3 fell 1% to $3,153 a ton, zinc CMZN3 slipped 1.6% to $3,536.50, lead CMPB3 lost 0.2% to $1,868.50 and tin CMSN3 shed 1.4% to $52,250.
Tariff uncertainty and weak industrial demand weigh on outlook
COMEX copper HGcv1 was down a steeper 1.9% to $6.22 per lb, with the White House yet to announce a proposed import tariff on refined copper.
