Copper eases but holds near two-week highs as tight China supply offers support

Copper retreated modestly on Thursday, although prices stayed close to their strongest levels in about two weeks as limited Chinese availability lent support. Business Recorder reported that the London Metal Exchange's three-month contract was down 0.31% at $14,432.50 a tonne by 0330 GMT, after Wednesday's peak of $14,517 and closing level of $14,477.50.

Shanghai's most-active copper contract lost 0.25% to 109,560 yuan ($16,435.64) per tonne. China's Yangshan import premium reached $205 a tonne on Wednesday, its highest reading in over ten years, while the domestic premium rose to 1,085 yuan after falling following holiday-related restocking. Shanghai exchange-tracked inventories dropped by over 26% last week. The prospect of another US rate increase, with markets anticipating a December move, remained a constraint; other LME metals showed mixed moves, with nickel up 0.70% and tin gaining 1%.