METALS-Copper climbs as Chinese traders return from holiday

Feb 24 (Reuters) - Copper pulled higher on Tuesday as Chinese traders returned to the market after holiday, while caution stemming from rising inventories and U.S. tariff uncertainties persisted.

The most-active copper contract SCFcv1 on the Shanghai Futures Exchange climbed 0.75% to close daytime trading at 101,510 yuan ($14,728.88) a metric ton on the first day of the reopening of the exchange after China's nine-day Lunar New Year break.

The benchmark three-month copper CMCU3 on the London Metal Exchange, meanwhile, gained 1.67% to $13,084 a ton as of 0735 GMT.

"Copper is showing resilience despite high stocks level as investors remained confident, but it would require fresh catalyst for copper to break-through in each direction," a trader based in Shanghai said, declining to be named as the person is not authorised to speak to the media.

Copper stocks sitting in LME-registered warehouses MCUSTX-TOTAL are quickly building up since mid January, totalling 241,825 tons, the highest since March 2025, according to exchange data released on Monday.

Copper also faces renewed uncertainty after the U.S. Supreme Court ruled against President Donald Trump's emergency tariffs on Friday, provoking him to announce temporary tariffs of 15% on imports from all countries.

The ruling left in place sector-specific levies that were imposed, citing national security reasons, including those on aluminium, steel and copper products.

Metals are moving higher as "the decision reduced immediate risks to global trade flows and industrial demand," ING analysts said in a note.

"However, the upside may remain capped, given that some sector-specific tariffs remain in place and the administration could pursue alternative trade measures."

Elsewhere in the market, nickel climbed as Indonesian officials considered revoking the environmental permit of PT QMB New Energy Materials, a nickel and cobalt joint venture led by China's GEM.

Shanghai's most-traded nickel contract SNIcv1 rose 1.30% to close at 137,950 yuan a ton, while the London benchmark nickel CMNI3 jumped 2.27% to $17,675 a ton.

Among other SHFE base metals, aluminium SAFcv1 gained 0.75%, zinc SZNcv1 rose 0.74%, tin SSNcv1 climbed 0.90% and lead SPBcv1 posted sole loss, falling 0.18%.

Elsewhere on the LME, aluminium CMAL3 rose 0.58%, zinc CMZN3 gained 0.91%, lead CMPB3 added 1.64% and tin CMSN3 advanced 4.57%.

($1 = 6.8919 Chinese yuan renminbi)