Copper on the London Metal Exchange and the Shanghai Futures Exchange held near the highest levels since late March, driven by concerns over tight regional supply and increased shipments to the U.S. as traders rush to beat potential import tariffs.

Three-month copper on the LME fell 0.35% to $9,978 per metric ton as of 0703 GMT, still near its highest since March 26, and the most-traded copper contract on the SHFE eased 0.07% to 80,560 yuan ($11,246.37), or its strongest level since March 27.

“The United States is busy with trade talks with its major trade partners, and may deal with copper import tariff later, and this has been viewed as extra time by the traders to move copper to the United States when the prices over there are much higher,” said a Shanghai-based metals analyst from a futures company.

“Copper stocks at the SHFE are just too low in absolute volume, thus being more supportive to prices.”

Copper stocks at the warehouses monitored by the SHFE totalled 81,550 tons by June 27, down 69.6% from the year’s highest on February 28 or 74.5% lower on the year.

U.S. Comex copper futures (HGc3) rose 2% to $5.199 a pound on Wednesday, and the premium against the LME copper futures (LMECMXCUc3) was 14%.

Total copper stocks (MCUSTX-TOTAL) in LME-registered warehouses were at 93,250 tons as of Wednesday, down 65.6% from the year’s highest in mid-February, as cargoes were rushed to the United States following its investigation into copper imports and the prospect of new tariffs.

SHFE nickel advanced 0.8% to 121,790 yuan a ton, lead gained 0.5% to 17,245 yuan, zinc was up 0.5% at 22,325 yuan, and aluminium edged 0.07% higher to 20,680 yuan, while tin fell 0.33% to 268,420 yuan.

LME nickel gained 0.44% to $15,370 a ton, lead grew 0.34% to $2,066.5, and tin inched up 0.05% at $33,730, while zinc eased 0.49% to $2,744, and aluminium dropped 0.34% to $2,611.
Source: Reuters