METALS-Copper breaks above $10,000/ton mark on tariff uncertainty

By Polina Devitt

LONDON, July 2 (Reuters) - Copper prices hit three-month highs on Wednesday as uncertainty about U.S. tariffs inflated the premium of U.S. copper futures against the London benchmark, although modest inflows into London Metal Exchange stocks eased accumulated tightness.

Three-month copper CMCU3 on the LME broke above the psychological mark of $10,000 a metric ton and was up 0.8% at $10,015 by 1603 GMT.

U.S. Comex copper futures HGc3 rose 2.0% to $5.199 a pound, meaning the premium against the LME LMECMXCUc3 was 14%, as the market expects the U.S. investigation into possible copper import tariffs to take longer while the White House is focused on the "reciprocal" tariffs talks.

"It's really CME which has led the way," said Alastair Munro, senior metals strategist at Marex.

Available stocks in the LME-registered warehouses MCUSTX-TOTAL rose to a one-month high of 61,350 tons after daily data showed inflows of 2,075 tons. That revived expectations more metal is due to come from China this month and drove down the premium for nearby contracts.

The premium for the LME's cash copper contract over the three-month one CMCU0-3 was last at $85 a ton compared with $320, a level hit last week, which was the highest level since November 2021.

"The market consensus is for prices to go lower amid the expectation of more stocks but you are now seeing evidence of wider money coming into the arena," Munro said.

Available LME stocks of copper, used in power and construction, are still down 76% since mid-February after massive outflows to the U.S.

"Until we know the outcome of the U.S. investigation, copper will continue to deviate away from its Dr. Copper status and be ruled by micro drivers," Natalie Scott-Gray, senior metals analyst at StoneX, said in a note.

Meanwhile, LME aluminium CMAL3 rose 0.9% to $2,620.85 a ton, shrugging off the LME data that showed available stocks rose to 348,000 tons, the highest level since December, after deliveries of 10,000 tons. 0#MALSTX-LOC

Zinc CMZN3 climbed 1.5% to $2,755, lead CMPB3 added 1.0% to $2,058.50, tin CMSN3 edged up 0.1% to $33,665, while nickel CMNI3 gained 0.9% to $15,320, having hit the three-week high of $15,340.

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