Copper firms on worries over dwindling LME inventories
COPX•Other LME and SHFE metals
Among LME metals, aluminium CMAL3 was up 0.02%, zinc CMZN3 was steady, lead CMPB3 added 0.03%, nickel CMNI3 nudged down 0.01% and tin CMSN3 added 0.22%.
On the SHFE, aluminium SAFcv1 added 0.4%, zinc SZNcv1 gained 1.15%, lead SPBcv1 added 0.4%, nickel SNIcv1 ticked 0.1% higher and tin SSNcv1 added 0.39%.
Copper rises on supply fears and inventory declines
Copper prices rose to a six-month high on Wednesday, supported by supply fears on dwindling LME inventories and upbeat economic sentiment.
The benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.49% at $14,419.5 a metric ton by 0300 GMT. It touched $14,437 a ton earlier in the session, the highest since January 29.
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.11% to 109,360 yuan ($16,272.36) a ton.
Speculative buying and tariff uncertainty drive flows
Price gains in the metal have been supported by non-traditional copper participants including hedge funds and other speculative investors trading on volatile LME inventory figures.
"There are a lot of non-traditional sources trading copper, and an awful amount of fast money moving on data releases," said David Wilson, head of metals strategy at BNP Paribas.
Uncertainty around potential U.S. tariffs on imports of refined copper has caused large outflows of the metal from LME warehouses.
Available copper in LME-registered warehouses fell 11,925 tons to 106,950 tons on Tuesday, exchange data MCUSTX-TOTAL showed. Outflows this week have resurrected inventory fears, which were somewhat eased by big warehouse deposits last week.
