Copper pulled higher on Tuesday as Chinese traders return to the market after holiday, while caution stemming from rising inventories and US tariff uncertainties persists.
The most-active copper contract on the Shanghai Futures Exchange climbed 1.40% to 102,190 yuan ($14,817.88) a metric ton as of 0300 GMT on the first day of the reopening of the exchange after China’s nine-day Lunar New Year break.
The benchmark three-month copper on the London Metal Exchange, meanwhile, gained 2.29% to $13,163.50. Copper stocks sitting in LME-registered warehouses are quickly building up since mid-January, totalling 241,825 tons, the highest since March last year, according to exchange data released on Monday.
Copper also faces renewed uncertainty after the US Supreme Court ruled against President Donald Trump’s emergency tariffs on Friday, which provoked him to announce temporary tariff of 15% from all countries.
The ruling left sector-specific levies that were imposed citing national security reasons in place, including those on aluminium, steel and copper products.
Metals are moving higher as “the decision reduced immediate risks to global trade flows and industrial demand,” ING analysts said in a note.
“However, the upside may remain capped, given that some sector-specific tariffs remain in place and the administration could pursue alternative trade measures.”
Elsewhere in the market, nickel is moving up as Indonesian officials considered revoking the environmental permit of PT QMB New Energy Materials, a nickel and cobalt joint venture led by China’s GEM.
Shanghai’s most-traded nickel contract rose 1.30% to 137,950 yuan a ton, while the London benchmark nickel jumped 2.30% to $17,680 a ton.
Among other SHFE base metals, aluminium gained 1.16%, zinc rose 1.51%, lead added 0.78% and tin climbed 1.94%.
Elsehwhere on the LME, aluminium rose 1.15%, zinc gained 2.28%, lead added 1.20% and tin soared 3.74%.
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