Among other metals, LME aluminium CMAL3 gained 0.9% to $3,186.50 a ton, zinc CMZN3 added 1.1% to $3,589.50, lead CMPB3 advanced 1.4% to $1,895.50, nickel CMNI3 rose 0.8% to $17,215 and tin CMSN3 was up 0.2% at $54,000.
Copper eases after six-week peak
Copper prices eased on Wednesday after hitting a six-week peak on the previous day due to shortages outside the U.S. and sliding inventories, as the market was dampened by resistance to higher prices in China and worries about inflation.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.5% at $13,813 a metric ton by 1605 GMT after hitting its highest in more than six weeks on Tuesday at $13,934.
China demand, dollar strength and tariff arbitrage weigh on the market
"That it stalls ahead of $14,000 reminds us all that China is not a price chaser, but rather there on dips," said Alastair Munro, senior base metals strategist at broker Marex.
"The dollar's rally amid the rising crude price was some sort of overnight headwind with the rates markets also reflective of the resultant inflationary risks."
Oil prices rose over 2% to near six-week highs as hostilities escalated in the Middle East. The dollar index advanced during the past four sessions, but was slightly weaker on Wednesday as traders weighed the possibility of Japanese intervention for its weak yen.
A firmer dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 touched its highest since June 3 at 106,760 yuan on the back of local shortages.
"Traders are still delivering metal to the U.S., incentivised by the CME-LME import arbitrage ahead of the U.S. decision on whether to impose a tariff on refined copper," said Craig Lang, principal analyst at CRU.
U.S. Comex copper futures HGc3 dropped 0.7% to $6.51 a lb, bringing the premium of Comex over LME copper to $528 a ton.
The Yangshan copper premium SMM-CUYP-CN, a gauge of import demand, hit its highest since November 2022 on Wednesday at $115 a ton.
On the LME, the premium of the cash contract over three month futures surged to $27.50 a ton, the highest since January and compared to a discount of $47 a week ago, indicating tight supplies.
CPER•
