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Copper prices rise as supply pressures increase, but demand is still low

Copper prices rise as supply pressures increase, but demand is still low
Copper prices rise as supply pressures increase, but demand is still low

Copper prices rose on Thursday as a result of?a continuing supply and declining inventories. However, higher prices slowed down downstream purchases and limited further gains.

Benchmark three-month?copper?on London Metal Exchange?was up 0.28 %?at $13,846.5 per metric ton at 0300 GMT.

The Shanghai Futures Exchange's most traded copper contract was unchanged at 106150 yuan (15,682.02 dollars) per ton.

Prices on both exchanges reached multi-week highs after Tuesday and Wednesday, when supply fears combined with improved demand drove prices to new record levels.

Analysts from Chinese broker Galaxy Futures stated that the combination of "rising copper prices" and high premiums has curbed downstream purchasing.

Copper inventories in LME-registered Shanghai-monitored warehouses The physical supply has been under pressure in recent months as the price of goods has fallen.

The Yangshan copper price has risen. On Wednesday, the price of a ton of, which measures China's demand for imports, reached a record high.

Prices have also been supported by strong shipments of copper into the United States ahead of any potential U.S. tax on refined copper. Traders are still waiting for details. The LME Cash-to-three month copper premium On Wednesday, the price of a ton of coal was slightly lower by $4.7, signaling pressure on supply in the near term. Geopolitical events continue to influence risk sentiment and demand expectations. Oil prices rose?to an all-time high of six weeks after Yemen's Iran aligned Houthis claimed they had attacked?two tankers? as part of a Saudi Arabian blockade. The rise in energy prices has sparked inflation fears and increased the likelihood of interest rate hikes. This typically slows economic growth. Aluminium gained 0.14% on the LME, while zinc, lead, and nickel all gained 0.42 percent. Tin gained 0.6%. On the SHFE, aluminium rose by 0.58%. Zinc gained 1.61%. Lead gained 1.11%. Nickel gained 1.17%. Tin added 0.29%. $1 = 6.7689 Chinese Yuan Renminbi (Reporting and editing by Sonia Cheema).

(source: Reuters)