Shanghai copper prices are the highest in a single day since March, mainly due to supply concerns and demand expectations

Shanghai copper posted its largest daily gain in several months on Tuesday, as'supply concerns and the expectation of higher demand from China? outweighed higher oil price and Freeport's pushback against a reported delay in its Indonesian mine.

The most active?copper?contract on the 'Shanghai Futures Exchange' gained 2.51%, to 106.940 yuan (15,742.44) per metric ton, as of 0330 GMT, after increasing as much as 2.9%, the largest rise since March 24,

Peru, which is the third largest copper producer in the world, has authorized its state-run company Petroperu, to apply for $2 billion of state-insured loan to ensure the continuity of its operation amid the high oil prices caused by the Iran War.

The energy crisis is causing a shortage of copper, traders said.

Prices were also supported by expectations that China's refined imports of copper would rise in the second half, due to a firm demand and a possible decrease in domestic production because of smelter repairs.

Analysts and traders say that the demand from power grid investment and electric vehicles has helped to pull more refined copper to China.

Freeport-McMoRan fought back against reports that the full production of its Grasberg Mine in Indonesia may be delayed until 2028. It said it still expects full output by 2027. Freeport has already reduced its recovery forecast for Grasberg in the second half of 2026 from 85% to 65%, leaving supply issues in place despite denial.

Brent futures are now above $105 per barrel, easing the pressure of rising energy prices due to the Iran War.

The benchmark three-month copper price on the London Metal Exchange fell 0.24%, to $13,909.50 per ton. On Monday, it had risen 2.7%, to $13,943 per ton. This was a record closing price.

On the SHFE, aluminium gained 0.18%. Zinc rose 1.18%. Lead fell 0.99%. Nickel lost 0.71%. Tin soared 1.47%.

Aluminium, zinc, lead, and nickel all fell in price on the LME. Tin also dropped by 0.98%.

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(source: Reuters)