Copper climbs to over two-week high amid tariff uncertainty, Iran risks

Copper rose to a more than two-week high on Tuesday as U.S. tariff uncertainty and tightening supply outside the U.S. supported the market, while Middle East peace talks remained in focus. The benchmark three-month copper contract on the London Metal Exchange was up 0.99% at $13,968.50 a metric ton at 0705 GMT after reaching $13,978, its highest point since May 14. The most-traded copper contract on the Shanghai Futures Exchange (SHFE) climbed 1.86% to close daytime trading at 106,620 yuan ($15,769.39) a ton after reaching 106,720 yuan, its highest level since May 15. The White House on Monday amended tariffs on some copper, aluminium and iron imports and lowered duties on some agricultural and industrial equipment, though the order did not resolve the broader copper tariff question that has driven regional dislocation in the market. "Tariff uncertainty is likely to support market sentiment," analysts at ING Economics said. COMEX copper's premium over LME widened, continuing to encourage shipment into U.S. warehouses. Meanwhile, the discount for LME cash copper against three-month copper also narrowed, indicating tightening near-term supply. The Middle East remained in focus after Lebanon announced a partial ceasefire between Hezbollah and Israel, though fighting continued in southern Lebanon. The limited de-escalation has not resolved the broader U.S.-Israeli war on Iran, with Iranian state media saying Tehran is halting indirect peace talks with Washington and a senior Iranian commander threatening to disrupt the Bab el-Mandeb Strait. The conflict has kept energy risks elevated for metals, while aluminium is more directly exposed as the Gulf accounts for around 9% of global output. LME aluminium rose 1.63% to $3,776.50 a ton after touching a more than four-year high at $3,787.50, while Shanghai aluminium rose 2.10% to close at 24,825 yuan. Tin also rallied. London tin rose 3.25% and its Shanghai peer surged 5.19%. Among other metals on the LME, zinc added 1.08%, lead rose 0.77%, and nickel gained 0.54%. Elsewhere on the SHFE, zinc rose 1.09%, lead ticked 0.18% higher and nickel gained 1.14%.