METALS-Copper rises, set for ninth weekly gain as SHFE, LME stocks fall

Zinc, also supported by falling warehouse stocks this week, was up 1.24% on the LME CMZN3 but only 0.08% higher on the SHFE SZNcv1 on Friday.

Chinese zinc exports have helped cool fears of a shortage outside the country, even as supply tightness and speculative positioning continue to support prices.

"LME inventories are low, and treatment charges remain deeply negative, highlighting tight concentrate supply and pressure on smelter margins," analysts from ING said in a note.

Among LME metals, aluminium CMAL3 dipped 0.06%, lead CMPB3 dipped 0.13%, nickel CMNI3 dipped 0.14% and tin CMSN3 added 0.37%.

Among SHFE metals, aluminium SAFcv1 added 0.36%, lead SPBcv1 gained 0.84%, nickel SNIcv1 lost 0.38% and tin SSNcv1 gained 0.86%.

Available copper in LME-registered warehouses MCUSTX-TOTAL was at 107,050 tons on Thursday, exchange data showed, down from 166,775 tons a week earlier. Copper stocks in SHFE-monitored warehouses CU-STX-SGH fell by 19.1% to 72,428 tons this week.

"Copper prices have been supported this week by another large increase in LME warrant cancellations," said Craig Lang, principal analyst at information provider CRU.

This week's spree of LME copper warrant cancellations — meaning metal earmarked for withdrawal from warehouses — offset much of the stock gains from big inflows last week.

Outflows from LME and SHFE warehouses and into U.S. ones ahead of a potential U.S. tariff on imports of refined copper have raised concerns about availability.

LME prices have risen by 7.2% since the end of June amid the outflows, and around 79% of visible refined copper stocks globally are now in the U.S., Lang said.