Copper rally holds firm even as rising oil threatens growth outlook

Copper prices stayed close to record territory on Thursday, as physical metal outside the United States remained scarce while oil rose above $100 a barrel. According to Business Recorder, the LME's three-month copper price eased 0.07% to $14,757 a tonne at 03:30 GMT, after peaking at a record $14,858.50 on Wednesday. Shanghai's main copper contract added 0.49%, reaching 111,660 yuan ($16,646.54) per tonne.

Other LME base metals mostly declined: aluminium lost 0.33%, zinc 0.75%, lead 0.21% and nickel 0.04%, while tin rose 0.84%. Higher oil prices, linked to the escalating Middle East conflict, stoked inflation fears and lifted bond yields worldwide. Tighter financial conditions, driven by those higher yields, might dampen growth and appetite for industrial metals.

COMEX copper stocks rose slightly to 767,495 short tons, or 696,260 tons as of Wednesday, with most held in the US after inflows ahead of possible tariffs. Supply outside the US is still tight, yet the LME cash premium over three-month metal fell to $23.50 a tonne from $545 in mid-August, pointing to some metal moving into LME warehouses. US consumer price data due Friday is also in focus, and markets now assign roughly 60% odds to a Fed rate hike this month, up after last week's strong jobs figures.