Copper gains on Chinese demand, falling inventories
XLB•Other base metals and aluminium move higher
Elsewhere, aluminium edged up by 0.53% on the LME CMAL3 and ticked down by 0.22% on the SHFE SAFcv1, as the market digested lower primary production figures and an adjustment to tariffs on imports of the metal into the U.S., announced overnight.
Global primary aluminium production fell 1.5% year-on-year in June, data from the International Aluminium Institute showed on Monday.
The light metal has been buffeted by the Middle East conflict, which disrupted supply from the region, which accounts for around 9% of global primary smelting capacity.
Among other LME metals, zinc CMZN3 gained 0.91%, lead CMPB3 added 0.16%, nickel CMNI3 rose 0.77% and tin CMSN3 climbed 2.16%.
On SHFE zinc SZNcv1 gained 0.55%, lead SPBcv1 was steady, nickel SNIcv1 added 0.28% and tin SSNcv1 rose 1.69%.
Copper supported by tight inventories and Chinese buying
Copper rose on Tuesday, supported by supply tightness and strong Chinese buying, even as the U.S.-Iran conflict fuelled worries about the global economic growth and demand.
The benchmark three-month copper CMCU3 on the London Metal Exchange increased 0.93% to $13,748.5 a metric ton by 0700 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 1.64% at 105,460 yuan ($15,589.29) a ton.
"Tight inventories, strong import demand and falling exchange stocks suggest copper fundamentals remain supportive in the near term," analysts from ING said in a note.
The Yangshan copper premium SMM-CUYP-CN, a gauge of China's appetite for importing metal, increased to $103 a ton on Monday, its highest since May 2025.
The cash-to-three-month spread on the LME CMAL0-3, an indicator of short-term physical availability, narrowed close to backwardation, signalling tighter supply.
