Copper touches six-week high on Chinese shortages, eroding inventories

Industrial metals also gained support from higher risk appetite among investors amid a rebound in global stocks. MKTS/GLOB

LME aluminium gained 0.9% CMAL3 to $3,169.50 a ton as the market digested lower global primary output in June and an adjustment to tariffs on imports of the metal into the United States.

LME zinc CMZN3 rose 1% to $3,556 a ton, lead CMPB3 fell 0.5% to $1,870, nickel CMNI3 advanced 1.1% to $17,110 and tin CMSN3 climbed 2.1% to $53,995.

U.S. Comex copper futures HGc3 outperformed the LME, gaining 3.5% to $6.57 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.

Copper prices hit their highest in more than six weeks on Tuesday, lifted by firm demand in top consumer China and sharp declines in inventories.

Benchmark three-month copper CMCU3 on the London Metal Exchange jumped 2.3% to $13,933 a metric ton by 1620 GMT, its strongest level since June 4.

"Copper is being pulled higher by a tightening Chinese market. Stocks are falling, import premiums are surging and physical demand has remained stronger than expected despite the seasonal slowdown," said ING commodities strategist Ewa Manthey.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 1.6% to 105,460 yuan ($15,589.29) a ton.