Traders said volumes were likely to remain muted due to a U.S. holiday, with attention focused on copper and zinc.
Benchmark copper on the London Metal Exchange touched a record high of $14,533 a metric ton, surpassing its previous all-time peak of $14,527.50 reached in January. It later pared gains slightly to $14,518 by 1515 GMT, up 0.7%.
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Traders and producers have been shipping large volumes of copper to the U.S. since President Donald Trump first mooted import tariffs in February last year. Comex copper stocks currently stand at a record 766,795 short tons, or 695,624 metric tons.
“It’s hard to know what will happen on tariffs, but the longer there is uncertainty, the longer prices will remain elevated as material flows to the U.S.,” Albert Mackenzie, an analyst at Benchmark Mineral Intelligence, told Reuters.
Elevated premiums, or backwardations, for nearby contracts over longer-dated forwards have encouraged some copper to flow back to the LME.However, cancelled warrants, which represent metal earmarked for delivery, stood at 51%, indicating that more than 121,000 tons of copper is likely to leave the LME system over the next few weeks.
The premium for cash copper over the three-month forward contract climbed above $430 a ton in the middle of August, its highest level since 2021. It closed at around $74 on Friday.
Another indication of tightening supplies outside the U.S. is the level of stocks in warehouses monitored by the Shanghai Futures Exchange. Inventories stood at 63,000 tons, down 85% since the middle of March and at their lowest level since January 2024.
Copper prices on the SHFE are also in backwardation, suggesting that the industry in top consumer China is increasingly concerned about supplies.
Elsewhere, zinc gained 1.1% to $3,988 a ton, supported by tight supplies, after touching its highest level since May 2022 at $3,998.
A weaker U.S. currency, which makes dollar-priced metals cheaper for holders of other currencies, provided broader support to base metals.
Aluminium rose 0.7% to $3,315 a ton and tin added 0.4% to $55,100, while nickel slipped 0.7% to $16,725 and lead declined 0.3% to $1,903.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
