London Copper Climbs as Tight Supply, Falling Oil Offer Support

03/11/2026 05:10 AST

London copper recouped some of the previous week's losses on Monday, supported by supply concerns and lower oil prices, as talks to end the US-Israeli war on Iran continued.

Benchmark three-month copper on the London Metal Exchange was up 0.73% at $14,258.5 a metric ton by 0700 GMT. The most-traded copper contract on the Shanghai Futures Exchange edged 0.27% lower to 108,720 yuan ($16,354.53) a ton, reported Reuters.

An inflow of stocks into US warehouses ?ahead of ?a potential tariff on imports of refined ?copper ?has created regional bottlenecks ?and generated supply fears.

Chile's copper commission Cochilco on Friday sharply lowered its 2026 output forecast from the world's largest copper producer.

In China, the world's biggest consumer, tight supply had the closely watched Yangshan premium end last week at $200 a ton, near its highest level in ?over a decade.

The premium shows good demand ?for imported copper into China, ?with inventories in SHFE-monitored warehouses down more than 75% in ?the last six months.

"Underlying fundamentals remain supportive, with ?signs of tightness still evident across the physical market," analysts from ING said in a note.

Oil prices fell as Iranian and Qatari officials, who are acting as mediators, held a third straight ?day of talks to end the Iran war.

Lower oil prices could ease the pressure ?on economic activity ?and on demand for growth-sensitive industrial metals such as copper. Concerns around high oil prices helped make October the first month since June that copper prices fell.

The US dollar index fell ahead of the US midterms, supporting greenback-denominated commodities by making them cheaper for buyers using other currencies.

Among LME metals, aluminium dipped 0.15%, zinc ticked 0.14% higher, lead fell 0.21%, nickel rose 1.5% and tin gained 0.68%.

On the SHFE, aluminium lost 0.93%, zinc fell 1.01%, lead dropped 0.59%, nickel lost 0.5% and tin lost 1.4%.

Asharq Al Awsat