Copper holds near six-month high after Congo concentrate export ban

Copper rose on Friday to linger near a six-month high, after the Democratic Republic of Congo's ban on copper and cobalt concentrate exports raised supply concerns. Benchmark three-month copper on the London Metal Exchange gained 0.73% to $14,206.50 a metric ton by 0700 GMT and was poised to end the week over 3% higher. The most-traded September copper contract on the Shanghai Futures Exchange rose 0.73% to closed daytime trading at 108,400 yuan ($16,067.11) a ton and was up 2.34% for the week. It touched 108,470 yuan earlier, its highest since May 14. LME copper surged on Thursday to $14,369.50, its highest since January 29, when the metal hit a record $14,527.50, after Reuters reported the Congo measure. The order prohibits exports of copper and cobalt concentrates with immediate effect, although one-year waivers may be granted under strategic circumstances. Its direct effect on refined copper supply is expected to be limited because Congo exports most of its copper as cathode. The country shipped 696,725 tons of copper cathodes in the first quarter, compared with concentrates containing 18,863 tons of copper metal. The announcement, however, landed in a market already supported by low inventories, tight concentrate availability and continuing mine disruptions. "The news reinforced an already bullish market backdrop characterised by low inventories, tight concentrate availability and ongoing supply disruptions," ING analysts said in a note. LME copper inventories continued to fall. The COMEX copper stocks , meanwhile, rose to 720,439 short tons (653,571 tons) on Thursday as uncertainty over possible U.S. import tariffs continued to draw metal into the country. ING said tight physical markets and constrained mine supply should continue to support prices, although disappointment over U.S. tariff measures could prompt consolidation with copper trading close to record highs. Among other LME metals, aluminium rose 0.74%, zinc gained 0.62%, lead added 0.32%, nickel climbed 1.72% and tin advanced 0.71%. On the SHFE, aluminium gained 0.86%, zinc rose 1.33%, lead added 0.41% and nickel advanced 0.78%, while tin slipped 0.10%.