Among other metals, LME aluminium CMAL3 gained 1% to $3,188 a ton, zinc CMZN3 advanced 1% to $3,586, lead CMPB3 added 1.2% to $1,891, nickel CMNI3 rose 0.9% to $17,235 and tin CMSN3 was up 0.1% at $53,935.
($1 = 6.7722 Chinese yuan)
Copper eases after six-week peak
Copper prices eased on Wednesday after hitting a six-week peak on the previous day due to shortages outside the U.S. and sliding inventories, as the market was dampened by resistance to higher prices in China and worries about inflation.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.4% at $13,833 a metric ton by 1420 GMT after hitting its highest in more than six weeks on Tuesday at $13,934.
Shanghai and Comex copper track supply tightness
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 touched its highest since June 3 at 106,760 yuan on the back of local shortages.
"Traders are still delivering metal to the U.S., incentivised by the CME-LME import arbitrage ahead of the U.S. decision on whether to impose a tariff on refined copper," said Craig Lang, principal analyst at CRU.
U.S. Comex copper futures HGc3 dropped 0.7% to $6.51 a lb, bringing the premium of Comex over LME copper to $514 a ton.
Smelter maintenance and stockpiling due to typhoons are weighing on supply in China, while tight scrap supply is adding to demand for copper cathode, Lang added.
The Yangshan copper premium SMM-CUYP-CN, a gauge of import demand, hit its highest since November 2022 on Wednesday at $115 a ton.
China demand and inflation concerns weigh on sentiment
"That it stalls ahead of $14,000 reminds us all that China is not a price chaser, but rather there on dips," said Alastair Munro, senior base metals strategist at broker Marex.
"The dollar's rally amid the rising crude price was some sort of overnight headwind with the rates markets also reflective of the resultant inflationary risks."
Oil prices rose over 2% to near six-week highs as hostilities escalated in the Middle East. O/R
The dollar index =USD advanced during the past four sessions, but was slightly weaker on Wednesday as traders weighed the possibility of Japanese intervention for its weak yen. FRX/
A firmer dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.
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