METALS-Shanghai copper hits 7-week high on supply worries, strong China demand
XLB•Broader market backdrop and other metals
Elsewhere, the widening Middle East war pushed oil prices higher and economists polled by Reuters predicted the U.S. Federal Reserve would keep interest rates steady for the rest of the year.
The dollar .DXY was strong, making copper more expensive for buyers using other currencies.
Among other LME metals, aluminium CMAL3 was up 0.02%, zinc CMZN3 added 0.23%, lead CMPB3 dipped 0.27%, nickel CMNI3 gained 0.5% and tin CMSN3 climbed 0.2%.
On the SHFE, aluminium SAFcv1 gained 0.59%, zinc SZNcv1 rose 0.68%, lead SPBcv1 lost 0.88%, nickel SNIcv1 climbed 1.07% and tin SSNcv1 added 0.87%.
($1 = 6.7722 Chinese yuan)
Inventories fall as traders await U.S. tariff decision
Copper inventories have fallen in LME-registered warehouses MCUSTX-TOTAL and SHFE-monitored warehouses CU-STX-SGH. Chinese demand looks strong and the market is still waiting for news on potential U.S. tariffs on refined metal.
"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," Craig Lang, principal analyst at CRU, said.
Buying remained strong in China. The Yangshan copper premium SMM-CUYP-CN, a gauge of import demand, hit its highest since December 2023 on Tuesday, at $109 a ton.
Smelter maintenance and stockpiling due to typhoons are weighing on supply, while tight scrap supply is adding to demand for copper cathode, Lang said.
Shanghai copper rises on supply worries and strong China demand
SINGAPORE, July 22 (Reuters) - Shanghai copper rose to a seven-week high on Wednesday as supply worries and firm Chinese demand lifted prices, while London copper eased after touching a six-week peak a day earlier.
