Copper heads towards record high, focus on tight supplies outside US

According to Business Recorder, copper rose towards a record on Monday, with the London Metal Exchange benchmark up 0.1% at $14,430 a metric ton. The price is the strongest since January, when it reached an all-time high of $14,527.50. Buying was driven by expectations of scarce supply outside America, and a softer dollar added to the positive mood.

Since President Donald Trump floated import tariffs in February last year, traders and producers have shipped copper to the United States, and Comex stocks now stand at a record 766,795 short tons. Cancelled warrants and metal earmarked for delivery suggest more than 121,000 tons could leave the LME system in the coming days and weeks. ShFE-monitored warehouse stocks have dropped 85% since mid-March to 63,000 tons, a level not seen since January 2024.

Zinc climbed 0.8% to $3,976 a ton, close to the $3,990 level hit at the start of September, the highest since May 2022. Tight supplies and low LME stocks supported the metal, while aluminium, lead, tin and nickel moved in smaller steps. Aluminium gained 0.1% to $3,298, lead added 0.3% to $1,914, tin firmed 0.3% to $55,030, and nickel eased 0.5% to $16,755.