METALS-Copper climbs on falling inventories and easing demand fears

Copper prices rose to their highest in more than a week on Monday as lower oil prices alleviated anxiety about economic growth and demand while the market also focused on dwindling inventories.

Benchmark copper CMCU3 on the London Metal Exchange was up 0.6% at $13,876 a metric ton by 0903 GMT after touching $13,900 a ton for its highest since July 22.

Traders said the drop in oil prices after U.S. President Donald Trump called off a fresh attack on Iran as he sought a deal to curb Tehran's nuclear ambitions has also eased worries about price pressures and boosted sentiment.

"The markets continue to be headline-driven as we start the week, with energy markets serving as the primary focal point," Britannia Global Markets said in a note.

"The underlying fundamental picture (for copper) looks to remain supportive. Inventories in both China and London Metal Exchange warehouses are in a state of depletion."

Copper stocks in LME-registered warehouses have fallen nearly 40% since the end of May to their lowest since February at 244,025 tons.

Producers and traders have been shipping copper to the United States since February last year, when President Donald Trump threatened import tariffs, creating a premium for U.S. copper over LME prices.

The U.S. Commerce Department was due to complete a review of the copper market by June 30, but Trump has not yet announced a decision on tariffs.

Elsewhere, nickel prices fell after Indonesia resumed exports of minerals containing rare-earth by-products, easing near-term supply concerns. The three-month contract CMNI3 was down 1.2% at $17,040 a ton.

Indonesia's Presidential Chief of Staff Dudung Abdurachman said the ban applied only when rare earths were the primary product.