(Recasts with analyst comment and updated prices, adds
dateline)
By Eric Onstad
LONDON, June 5 (Reuters) - Copper prices hit their
strongest in two months on Thursday, boosted by speculators
after copper broke through technical levels as inventories
dwindled in London Metal Exchange warehouses and amid supply
worries after a big mine in Congo was suspended.
Three-month copper on the London Metal Exchange
gained 1.52% to $9,761 per metric ton by 1025 GMT, the strongest
since April 1.
Copper got added momentum from speculators after it
decisively broke above technical levels on the upside, spurring
some automatic buy orders, traders said.
"Overall it's quite a good backdrop for copper at this
point. You still got this build up of Comex stocks coming
through, so there's a squeeze on the LME effectively," said Dan
Smith, managing director at Commodity Market Analytics.
U.S. President Donald Trump's move to double tariffs on
aluminium and steel to 50% has renewed focus on an ongoing U.S.
investigation into potential new copper import duties.
That has accelerated a flow of copper to the United States,
including from LME inventories, as traders seek to profit from
higher prices there in anticipation of U.S. tariffs being
imposed on the metal.
U.S. Comex copper futures climbed 2.5% to $5.01 a lb,
boosting the premium over LME copper to $1,321 a ton.
LME copper stocks fell to 138,000 tons, the weakest in
nearly a year and down by nearly half so far this year
, while Comex inventories have shot up by 90% over
the past two months .
LME data on Thursday also showed that copper stocks were due
to continue to drop as holders of 11,625 tons of inventories
notified the exchange of pending removals.
Copper is also being supported by concern about the recent
suspension of the Kakula copper mine in the Democratic Republic
of Congo, Smith added.
Co-owner Ivanhoe Mines ( IVPAF ) said on Monday it planned to
restart a section of the mine later this month.
LME tin rose 0.4% to $32,145 a ton after hitting a
one-week high on Wednesday on concerns that the resumption of
supply from Myanmar's tin-rich Wa State would take longer than
previously expected.
Among other London metals, LME aluminium added 0.2%
to $2,489 a ton and nickel gained 0.8% to $15,520 while
zinc was little changed at $2,701 and lead eased
0.3% to $1,984.
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