Metals-China imports at nine-month high buoy copper prices
XLB•Other base metals mostly ease
In other metals, aluminium CMAL3 eased 0.4% to $3,137 a ton, zinc CMZN3 slipped 0.2% to $3,518, lead CMPB3 retreated 0.1% to $1,880, tin CMSN3 ceded 0.3% to $53,050 and nickel CMNI3 fell 0.2% to $16,920.
LME inventories fall and backwardation widens
Meanwhile, copper inventories in LME-approved warehouses have dropped 24% since end-May to 295,275 tons. Cancelled warrants, or metal earmarked for delivery, at 56% indicate another 166,025 tons is due to leave the LME system.
Much of the copper that has left the LME system since February last year, when U.S. President Donald Trump first mooted import tariffs on the metal, has been shipped to the United States.
"We expect the ex-U.S. copper market to remain tight near term, with the continued U.S. import pull on tariff expectations drawing units away from an already thin ex-U.S. market, and low Chinese inventories and limited scrap substitution cushioning the downside," analysts at Goldman Sachs said in a note.
Worries about copper availability on the LME have created a backwardation or premium for most nearby contracts against longer-dated forwards 0#MCU:.
Copper rises on tight inventories and strong China demand
LONDON, July 20 (Reuters) - Copper prices rose on Monday as dwindling inventories and signs of strong demand in top consumer China triggered a flurry of buying.
Benchmark copper CMCU3 on the London Metal Exchange was up 0.8% at $13,633 a metric ton at 1603 GMT.
Traders said import data showing China's imports of refined copper hitting a nine-month high in June boosted sentiment for the metal used in the power and construction industries. Part of the reason for higher imports is declining domestic supply due to smelter maintenance.
