SINGAPORE, July 27 (Reuters) - Copper prices firmed up on
Monday, buoyed by a nascent halt in fighting between the U.S.
and Iran and oil market relief.
Benchmark three-month copper on the London Metal
Exchange gained 0.26% at $13,681 a metric ton by 0300 GMT. The
most-traded copper contract on the Shanghai Futures Exchange
was up 0.27% at 105,010 yuan ($15,515.43) a ton.
The U.S. said it was pausing its airstrikes on Iran after 13
consecutive nights of attacks and Tehran said it would halt its
retaliatory attacks.
The tentative truce gave some relief to oil prices. Brent
crude fell more than 4% on Monday. It had topped $100 a
barrel for the first time since May last week.
Expensive energy raises fears of inflation and tends
togenerate bets on higher interest rates, which could weigh on
growth-dependent commodities like copper by dampening economic
activity.
The market will be closely watching Wednesday's U.S. Federal
Reserve meeting for its interest rate decision. Rates are
expected to remain flat, with interest-rate traders pricing in a
63.7% chance there will be no rate change at this meeting,
according to the CME's FedWatch tool.
Non-yielding gold gained, and the dollar index
edged lower. A cheaper dollar makes commodities like copper,
traded in the greenback, more affordable for buyers using other
currencies.
Copper has been supported by waning stocks outside the U.S.
The metal has been shipped into the countryat scale ahead of
potential tariffs on refined copper.
In top consumer China, copper in SHFE-monitored warehouses
fell 12.9% last week, to their lowest level since
February 2024, at 69,610 tons. Overall LME copper stocks
are at their lowest since March.
Among other LME metals, aluminium dipped 0.11%, zinc
added 0.31%, lead dipped 0.16%, nickel
lost 0.63% and tin gained 0.78%.
Elsewhere on SHFE, aluminium dipped 0.15%, zinc
added 0.32%, lead lost 1.17%, nickel
lost 0.39% and tin rose 1.76%.
($1 = 6.7681 Chinese yuan renminbi)