London copper climbs as tight supply, falling oil offer support
XLB•London copper rose 0.73% to $14,258.5 a metric ton, supported by supply concerns and lower oil prices. Tight supply and falling inventories in China also bolstered the market.
1. Copper prices rise
Benchmark three-month copper on the London Metal Exchange gained 0.73% to $14,258.5 a metric ton by 0700 GMT on Monday, recouping some of the previous week's losses. The most-traded Shanghai copper contract edged 0.27% lower to 108,720 yuan a ton.
2. Supply concerns persist
Stocks flowing into U.S. warehouses ahead of a potential tariff on refined copper imports have created regional bottlenecks and supply fears. Chile's copper commission sharply lowered its 2026 output forecast, while China's Yangshan premium ended last week at $200 a ton, near its highest level in more than a decade; inventories in Shanghai Futures Exchange-monitored warehouses have fallen more than 75% in six months.
3. Oil and dollar factors
Oil prices fell as Iranian and Qatari officials held a third straight day of talks to end the Iran war. Lower oil prices could ease pressure on economic activity and demand for industrial metals, while a weaker U.S. dollar supported greenback-denominated commodities by making them cheaper for buyers using other currencies.
