Copper surged nearly 3% to around $6.48 per pound on Tuesday, hitting its highest level in five weeks, as tightening physical market conditions in China and supply disruptions in major producing regions continued to support prices.
China's premium for imported copper climbed to $100 per tonne, the highest since May last year, as Beijing's crackdown on VAT fraud constrained scrap availability and boosted demand for refined copper imports.
Meanwhile, inventories in LME warehouses fell to their lowest level since March, while Chinese stockpiles remained near the bottom of their seasonal range as traders redirected metal to the world's largest consumer.
Supply concerns were further reinforced by weather-related disruptions in Chile, with recent storms weighing on output at major miners including South32, Antofagasta, and Codelco.
The bullish supply outlook offset jitters over the ongoing US-Iran conflict.