Copper holds firm, US-Iran fighting weighs on sentiment
XLB•Other base metals mostly weaker
Rapidly falling stocks are creating a higher price floor, a trend seen across most metals as material continues to leave warehouses, said Alastair Munro, senior base metals strategist at broker Marex.
Markets are looking ahead to Kevin Warsh's debut appearance before Congress as Federal Reserve Chair and U.S. inflation data for clues to dollar direction.
Aluminium CMAL3 rose 0.7% to $3,163.5, zinc CMZN3 retreated 1.5% to $3,563, lead CMPB3 fell 1.5% to $1,868, tin CMSN3 slipped 0.9% to $52,625 and nickel added 0.4% to $16,810.
Oil surge and falling inventories support the market
Oil prices surged after renewed military strikes between the United States and Iran reignited concerns over energy shipments through the Strait of Hormuz.
Focus was also on falling copper inventories. Copper stocks in LME-approved warehouses have dropped more than 20% since the end of May to a four-month low of 305,200 tons.
Cancelled warrants, or metal earmarked for delivery, at nearly 43% indicate another 130,525 tons is due to leave the LME system.
Tariff expectations and warehouse data remain in focus
Industry sources say much of this copper is heading for the United States where President Donald Trump is considering tariffs on the metal used in the power and construction industries.
Traders and producers expecting tariffs on imports have been shipping metal to the United States since Trump ordered a national security probe in February last year.
Copper stocks in warehouses registered with Comex at record highs of 676,534 short tons or 613,741 metric tons have climbed nearly 600% since then.
