Copper hits record high on weak supply outside US
CPER•Other base metals also advance
Copper stocks in LME-registered warehouses have shed nearly 40% since late May, while SHFE inventories CU-SGH-STX stood at around 63,000 tons last week, down 85% from a mid-March peak and the lowest since January 2024.
Zinc also rallied, with LME zinc CMZN3 up 0.7% at $4,013 a ton after touching $4,035, its highest in more than four years.
Among other LME metals, aluminium CMAL3 climbed 0.9% to $3,343 a ton, lead CMPB3 rose 0.8% to $1,914, nickel CMNI3 gained 0.6% to $16,810 while tin CMSN3 shed 0.8% to $54,695.
$1 = 6.7108 Chinese yuan renminbi
Copper extends rally to fresh record
Copper prices extended their rally on Tuesday, hitting a fresh peak on speculative buying amid tight supply outside of the U.S. and weak mine output.
Three-month copper on the London Metal Exchange CMCU3 gained 1.2% to $14,689 a metric ton by 1620 GMT, surpassing the previous record set on Monday.
Supply tightness outside the U.S. drives gains
LME copper has gained 18% this year, largely due to a large flow of metal moving to the U.S. in anticipation of tariffs being imposed there on refined copper.
Falling inventories outside the U.S., including in China, were driving the gains, said Alice Fox, analyst at Macquarie.
"This is being amplified by supply concerns, given the recent storms in Chile and some downward guidance revisions, the re-escalation of the situation in the Middle East reigniting concerns over costs and acid availability, and the continuing bullish narrative about demand for data centres."
