Copper prices rose on Monday as a jump in cancelled warrants or metal earmarked for delivery on the London Metal Exchange triggered buying, while the lower U.S. currency reinforced positive sentiment for dollar-priced industrial metals.
Benchmark copper on the LME traded 0.2% higher at $14,240 a metric ton in official rings. Prices of the metal used in the power and construction industries touched $14,396 last week, the highest since the $14,527.50 peak hit in January.
The cancellations <0#MCUSTX-LOC> are mostly in LME registered warehouses in the U.S. and Asia — in free-trade zones — and is likely to be delivered to Comex or to traders and consumers inside the United States, industry sources said.
Traders and producers have been taking copper to the United States since President Donald Trump mooted import tariffs in February last year. Comex copper stocks stand at record highs of 742,778 short tons, or 673,836 metric tons.
Cancelled warrants — title documents conferring ownership — on the LME are 50% of total stocks at 240,250 tons.
Traders said most of the cancelled metal had been delivered last week against short positions that were maturing. They expect to see premiums for nearby contracts rise after falling last week when the copper was delivered.
Elsewhere, zinc prices rose to $3,850 a ton, the highest since June 2022 on concern about shortages outside China, where stocks of the metal in warehouses approved by the Shanghai Futures Exchange have more than doubled this year . Zinc rose 0.4% to $3,838 a ton.
LME zinc stocks at 93,250 tons have dropped 25% since the middle of June.
A distortion in which both supply and demand are shrinking leaves the market looking tighter than weak consumption would justify, said Panmure Liberum analyst Tom Price, in a note.
Traders said large holdings of zinc warrants and cash <0#LME-WHC> contracts were adding to concerns about supplies on the LME. In other metals, aluminium eased 0.1% to $3,233, lead gained 0.4% to $1,906, tin added 0.2% to changed at $56,000 and nickel firmed 0.1% to $17,080.
