METALS-Copper gains as shipments to US likely to continue ahead of possible tariffs

By Hongmei Li

SINGAPORE, July 2 (Reuters) - Copper rose on the London Metal Exchange and Shanghai Futures Exchange on Wednesday, as traders are expected to continue rushing metal shipments to the U.S. ahead of potential import tariffs, further tightening already low inventories elsewhere.

The most-traded copper contract on the SHFE SCFcv1 gained 0.65% to 80,540 yuan ($11,237.77) per metric ton, as of 0702 GMT, after touching 80,930 yuan and persisting at its highest price range so far in 2025 around the latter half of March.

The three-month copper CMCU3 on the LME inched up 0.06% to $9,939.5.

"Other than expectations of better demand from China with higher PMI in May and the U.S. with better job market, low copper inventories at the SHFE and LME amid continuing shipments to the U.S. before the imposition of the import tariffs have been supporting prices," a Beijing-based metals analyst from a futures company said.

Copper stocks MCUSTX-TOTAL in LME-registered warehouses dropped 66% since the middle of February to 91,250 tons, and copper inventories CU-STX-SGH in the warehouses monitored by the SHFE also fell by 66% since early March to 81,550 tons as of last Friday.

Copper inventories in China typically rise in the summer months on weakening seasonal demand.

"U.S. Treasury Secretary Scott Bessent said that Washington's negotiations with Beijing will focus first on reciprocal tariffs, and only later on duties on copper and other raw materials," ANZ said.

"A delayed decision on tariffs would justify a premium on U.S. copper, giving traders more time to ship metal before levies take effect."

SHFE nickel SNIcv1 grew 0.69% to 121,220 yuan a ton, tin SSNcv1 gained 0.44% to 268,520 yuan, aluminium SAFcv1 gained 0.36% to 20,635 yuan, and lead SPBcv1 inched up 0.23% to 17,175 yuan, while zinc SZNcv1 eased 0.11% to 22,230 yuan.

LME aluminium CMAL3 gained 0.12% to $2,601.5 a ton, lead CMPB3 gained 0.12% to $2,040.5, and nickel CMNI3 also grew 0.12% to $15,225, while tin lost 0.58% to $33,465, and zinc CMZN3 down 0.15% to $2,710.

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