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Copper firms buy metals earmarked for exit from LME

Copper firms buy metals earmarked for exit from LME
Copper firms buy metals earmarked for exit from LME

The price of copper rose on Monday as a rise in the number of cancelled warrants and metals marked for delivery at the London Metal Exchange stimulated buying. Meanwhile, the lower U.S. dollar boosted the positive sentiment towards industrial metals priced in dollars.

Benchmark 'copper' on the LME was 0.2% higher, at $14240 per metric ton. Last week, prices of metals used in construction and power industries reached $14,396. This is the highest price since January's $14,527.50 high.

Industry sources say that the cancellations 0#MCUSTXLOC> are mostly stored in LME warehouses in Asia and the U.S., in free-trade zones. They will likely be delivered to Comex or traders and consumers in the United States.

Since President Donald Trump proposed import tariffs last February, traders and producers have been bringing copper to the United States. Comex -copper stocks The record is 742,778 short tonnes, or 673 836?metric tonnes.

The LME stocks 50% of the total stock, or 240 250 tons.

The majority of the metal that was cancelled last week had been delivered against maturing short positions. The premiums on nearby contracts are expected to rise, after having fallen last week as the copper was delivered.

Zinc prices in other countries rose to $3.850 per ton. This is the highest price since June 2022, due to concerns about shortages. Stocks of the metal have increased by more than twofold this year, at warehouses approved and inspected by the Shanghai Futures Exchange. . Zinc increased?0.4%, to $3 838 per ton.

LME Zinc stocks at 93 250 tons Since the middle of June, prices have fallen by 25%.

In a recent note, Panmure Liberum's Tom Price said that a distortion in which both the supply and demand shrink makes it appear as if the market is tighter than a weak consumer would warrant.

The traders said that 'large holdings of Zinc warrants and cash contracts 0#LMEWHC> were contributing to concerns regarding supplies on the LME. Other metals saw aluminium fall 0.1%, while lead rose 0.4%, tin increased 0.2%, and nickel gained 0.1%. (Reporting and editing by Shilpa Majumdar; reporting by Pratima Deai)

(source: Reuters)