Copper prices declined on Friday, reflecting a decrease in optimism regarding a U.S.-China trade deal. In contrast, aluminium prices on the Shanghai Futures Exchange (SHFE) rose, buoyed by lower inventories. The most-traded aluminium contract on SHFE increased for the third consecutive day, rising 0.5% to reach 20,440 yuan per metric ton ($2,846.28) by 0719 GMT, outperforming other metals on the exchange. Meanwhile, aluminium on the London Metal Exchange (LME) eased 0.6% to $2,502.5 a ton.
Analysts note that aluminium has been performing relatively well compared to other metals. A market analyst from Hangzhou mentioned that robust demand from the domestic market and declining SHFE stocks have contributed to aluminium’s strong performance. In contrast, copper prices fell due in part to a recent U.S. announcement regarding expanded tariffs on various home appliances beginning June 23, which was more impactful than ongoing tensions surrounding Iran and Israel. Despite the drop in copper prices, high premiums on U.S. copper futures (COMEX) and LME copper due to potential import duties are expected to continue supporting overall copper prices.
As of June 6, SHFE’s aluminium stock levels had dipped to 118,165 tons, the lowest figure recorded since February 2024. LME copper saw a 0.9% decrease, settling at $9,611 a ton, while SHFE copper also fell by 0.9% to 78,010 yuan, marking a 0.5% decrease for the week. LME zinc, lead, nickel, and tin also experienced slight declines, while SHFE lead gained 0.3%. Overall, market dynamics suggest a mixed performance among metals, driven primarily by supply and demand factors.