LONDON, Feb 18 - Copper moved higher on Wednesday, recovering from a more than one-week low reached in the prior session as traders stepped in to buy the dip and industrial metals tracked a rebound in technology stocks.
Benchmark copper on the London Metal Exchange was up 2.2% at $12,893 a metric ton as of 1700 GMT, having earlier risen to $12,941. The metal had fallen 1.8% on Tuesday, when it hit its lowest level since Feb. 6.
Market participants noted that trading flows from China were light because of the Lunar New Year holiday. "They rarely leave significant capital in the market" during the holiday, said Tom Price, an analyst at Panmure Liberum, adding that the reduced presence tends to increase volatility and prompt dip buying. "So I think that will offer a little bit of support."
Broker Marex said the base metals complex has been taking cues from the Nasdaq. The Nasdaq Composite was last up 1.3% as technology shares recovered some ground after an AI-led selloff, providing a lift for industrial metals prices.
Inventories on the LME continued to climb, extending a run of inflows. Copper stocks in LME warehouses rose for a 12th successive day to 224,625 tons, the highest level in 11 months, driven by fresh shipments into New Orleans and Kaohsiung. U.S. warehouses now account for almost 18% of all available copper in LME storage facilities. Separately, there remained 538,122 tons of copper on the U.S. Comex exchange.
Price and stock movements together raised questions about demand, with Price noting: "When inventories and copper prices lift together, something's not right," and pointing to a decline in U.S. copper consumption rates over the last 12 months.
Reflecting a subdued immediate demand for metal, the cash LME copper contract was trading at a discount of $97 a ton to the three-month forward, suggesting there is no pressing need to source near-term physical metal.
The broader base metals complex saw gains. Zinc climbed 2.4% to $3,365.50 a ton after touching a two-week low the previous day, while aluminium rose 1.7% to $3,086.50, set to end a four-day losing streak. Lead gained 0.9% to $1,963.50. Nickel jumped 3.1% to $17,375. Tin, by contrast, eased 0.3% to $45,710.
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