Copper pushes higher on Chinese buying, capped by firm dollar

Copper climbed for a sixth straight session on Tuesday, according to Business Recorder, as China, the largest user of the metal, built up supplies before its national holidays. Benchmark copper for three-month delivery on the LME rose 0.7% to $14,770 a metric ton by 0930 GMT, following a 1% gain in the previous session. A firmer US currency held the advance in check.

LME copper has risen 18% so far this year, largely because metal has flowed into the US amid speculation over possible tariffs on refined copper. The metal touched a record $14,875 on September 10, but then slid after Reuters sources said American officials worried that levies could raise manufacturers' costs. ING's Ewa Manthey attributed the support to tighter physical conditions in China, citing shrinking inventories, seasonal restocking and limited spot supply.

The most-traded contract on the Shanghai Futures Exchange gained 1.2% to 111,320 yuan ($16,616) per ton, with speculative buying lending further support. Sandeep Daga of Metal Intelligence Centre said Chinese purchases ahead of holidays and smelter closures were driving demand, while Sucden's Robert Montefusco cautioned that prices may be nearing a ceiling. Traders are now looking to a meeting between the US and Chinese presidents later in the week for hints on trade and the broader world economy.