Copper touches one-month high on Chinese shortages and Iran peace hopes
XLB•Shanghai and Comex copper extend gains
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 1.6% to 105,460 yuan ($15,589.29) a ton.
The premium paid over SHFE prices to buy copper in the spot market SMM-CU-PND jumped to 435 yuan a ton, up from zero last week and the highest since May last year.
Copper stocks in SHFE-monitored warehouses CU-STX-SGH have tumbled by 82% since early May while copper in LME-registered warehouses MCUSTX-TOTAL has slid by 28% in the same period, with much of the LME material moving to the United States.
U.S. Comex copper futures HGc3 outperformed the LME, gaining 2.9% to $6.53 per lb for its highest since June 17, bringing the Comex premium over LME copper to $529 a ton.
"Comex is getting an extra lift from tariff anxiety. The market is increasingly pricing the risk of U.S. import restrictions," Manthey added.
The U.S. Commerce Department was due to complete a review of the copper market by June 30, but President Donald Trump has not yet announced a decision on tariffs.
