METALS-Copper prices linger near multi-month highs on supply crunch, US tariff jitters

By Hongmei Li

SINGAPORE, July 3 (Reuters) - Copper on the London Metal Exchange and the Shanghai Futures Exchange held near the highest levels since late March, driven by concerns over tight regional supply and increased shipments to the U.S. as traders rush to beat potential import tariffs.

Three-month copper CMCU3 on the LME was flat at $10,005 per metric ton, as of 0103 GMT, but hovered near its highest point since March 26. The most-traded copper contract SCFcv1 on the SHFE gained 0.27% to 80,840 yuan ($11,285.77), its strongest level since March 27.

"The United States is busy with trade talks with its major trade partners, and may deal with copper import tariff later, and this has been viewed as extra time by the traders to move copper to the United States when the prices over there are much higher," said a Shanghai-based metals analyst from a futures company.

U.S. Comex copper futures HGc3 rose 2% to $5.199 a pound on Wednesday, and the premium against the LME copper futures LMECMXCUc3 was 14%.

Total copper stocks in LME-registered warehouses remained near their lowest levels since August 2023, despite a slight rebound over two days. Available inventories have dropped 76% since mid-February, as cargoes were rushed to the United States following its investigation into copper imports and the prospect of new tariffs.

SHFE lead SPBcv1 gained 0.7% to 17,290 yuan a ton, zinc SZNcv1 was up 0.7% at 22,370 yuan, nickel SNIcv1 advanced 0.6% to 121,550 yuan and aluminium SAFcv1 edged 0.2% higher to 20,710 yuan.

LME lead CMPB3 gained 0.2% to $2,064.5 a ton, nickel CMNI3 inched up 0.15% to $15,325, tin CMSN3 was up 0.15% at $33,765, and aluminium CMAL3 nudged 0.1% higher to $2,622.5, while zinc CMZN3 eased 0.11% to $2,754.5.

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DATA/EVENTS (GMT)

0750 France HCOB Services, Composite PMI June

0755 Germany HCOB Services, Composite Final PMI June

0800 EU HCOB Services, Composite Final PMI June

0830 UK Reserve Assets Total June

1230 US Non-Farm Payrolls, Unemployment Rate, Average Earnings YY June

1230 US International Trade $ May

1400 US Factory Orders MM May

1400 US ISM N-Mfg PMI June

($1 = 7.1630 Chinese yuan)

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