LONDON: London copper prices hit a five-month high on Thursday breaking above a major psychological mark of $10,000 per metric ton before retreating under pressure from a stronger dollar.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) fell 0.1% to $9,975 a ton by 1151 GMT after hitting $10,046.50, its highest since October 3.
Supporting the London price is the continuing growth in the most active May copper futures on the US Comex exchange , which were last up 0.5% at $5.125 a pound after hitting a ten-month high of $5.1485. The premium of the Comex most active contract hit a record high of $1,342 per ton on Wednesday and was last at $1,319 as the United States continues a probe into potential new tariffs on copper.
US President Donald Trump’s 25% tariffs on steel and aluminium products took effect last week. With a wide premium between the Comex and LME copper and the tariff threat itself, lots of copper is heading to the United States now, a source at a US warehouse operator said.
The anticipated surge in imports into the US is tightening supplies in other regions, analysts at ING said in a note. Comex copper stocks are down 7.5% since mid-February to 93,154 tons, but outflows from the LME copper stocks continue, daily LME data showed. The copper stocks in the LME-registered warehouses are at 223,275 metric tons, their lowest since mid-July.
LME aluminium rose 0.5% to $2,682.50 a ton and zinc gained 0.1% to $2,926.50 after daily LME data showed massive fresh cancellations, bringing the cancelled stocks to 60% of the total for both metals.
The cancellations indicate only the intention to remove the product from the LME system, and the metal can be put back on warrant. LME lead fell 1.0% to $2,065.50, tin lost 0.3% to $34,815 and nickel was down 0.3% at $16,355.
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