Metals: Copper pares gains as oil rally weighs on industrial metals

BHP

08/10/2026 09:00

Updates prices, adds detail on copper supply
By Solomon Cefai
SINGAPORE, Oct 8 (Reuters) - Copper gave up most of its early gains on Thursday, as a jump in oil prices revived inflation and interest rate worries and weighed on industrial metals, though supply concerns kept it slightly higher.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.11% at $14,491 a metric ton by 0700 GMT. Earlier in the session, it touched $14,646 a ton, its highest in nearly two weeks. 
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.63% to 110,260 yuan ($16,452.05) a ton.
Early expectations that Chinese buyers could restock following the country's week-long holiday, and amid low stocks and mounting mine supply risks supported copper prices, CRU principal analyst Craig Lang said.
In Chile, workers are on strike at Antofagasta's ANTO.L Centinela copper mine, while BHP BHP.AX this week said it had requested government mediation to avert a strike at the Escondida copper mine, which is the world's biggest. 
In the Philippines, copper and gold miner Philex Mining Corporation PX.PS said on October 1 that a union of workers there had voted to go on strike. 
The three mines account for nearly 5.5% of global copper mine production, Lang said. 
The supply disruptions have added to concerns over tightening availability outside the US, as traders have shipped material into the country ahead of a potential tariff on refined copper imports.
The LME cash-to-three-month copper spread CMCU0-3 widened to an $89.06 backwardation on Wednesday, signalling concerns about near-term availability.
   Crude oil rallied, as Middle East supply concerns persisted amid attacks on shipping, and non-yielding gold XAU= nudged up. Higher oil prices can stoke inflation and weigh on growth-dependent industrial metals by stifling economic activity.
   Among LME metals, aluminium CMAL3 lost 0.5%, zinc CMZN3 was up only 0.04%, lead CMPB3 lost 0.63%, nickel CMNI3 lost 1.14% and tin CMSN3 dropped 2.29%.
   Among SHFE metals, aluminium SAFcv1 dropped 2.15%, zinc SZNcv1 lost 1.49%, lead SPBcv1 lost 0.71%, and tin SSNcv1 dropped 3.05%. Nickel SNIcv1 was down 2.47%, after earlier touching 118,150 yuan a ton, its lowest since 2025.

($1 = 6.7019 Chinese yuan renminbi)

 (Reporting by Solomon Cefai; Editing by Subhranshu Sahu and Jochelle Mendonca)
 ((solomon.cefai@thomsonreuters.com))