Copper prices hit a six-month high amid global supply concerns

Copper prices in global commodity markets reached their highest level in the last six months, driven by a rapid drop in available inventories in LME warehouses and uncertainty regarding potential US customs tariffs.

Developments on the London and Asian Exchanges

The 3-month copper contract traded on the London Metal Exchange gained 0.49 percent in the early part of the day to rise to 14,419.50 dollars per ton, seeing its highest level since January 29.

The most actively traded copper contract on the Shanghai Futures Exchange in Asian markets increased by 1.11 percent to reach 109,360 yuan per ton.

Rapid Decline in LME Inventories

The rapid decline in available inventories in LME warehouses caused the amount of copper ready for delivery to decrease by 11,925 tons on Tuesday, dropping to 106,950 tons.

This sharp drop significantly strengthened expectations in the market that a short-term supply squeeze could occur.

US Tariffs and Global Impacts

Uncertainty regarding potential US customs tariffs on refined copper imports continues to affect global trade flows.

The diversion of more copper to the US leads to a rapid depletion of inventories in other parts of the world and an increase in global supply concerns.

Status of Other Base Metals

Among other base metals on the LME, aluminum gained 0.02 percent, lead 0.03 percent, and tin 0.22 percent, while zinc remained unchanged and nickel declined by 0.01 percent.

On the Shanghai side, zinc increased by 1.15 percent, aluminum and lead by 0.4 percent, tin by 0.39 percent, and nickel by 0.1 percent.