Copper prices edged higher on Wednesday, after hitting a six-week high in the previous session, supported by tight supply outside the United States and falling inventories. However, gains were limited by Chinese buyers' resistance to high prices and escalating inflation concerns.

Three-month copper on the London Metal Exchange (LME) rose 0.1% to $13,894 per metric ton by 09:30 GMT, after touching its highest in over six weeks at $13,934 on Tuesday, according to Reuters.

Alastair Munro, senior base metals strategist at brokerage Marex, said: 'The price stalling before $14,000 reminds everyone that China does not chase high prices; it tends to buy on dips.'

Copper prices came under pressure from a stronger dollar alongside a rise in crude oil prices overnight, as interest rate markets reflected increasing inflation risks.

Oil prices rose to their highest in about six weeks, with escalating tensions in the Middle East, while the dollar index posted gains over the past four sessions before easing slightly on Wednesday, as traders awaited possible Japanese intervention to support the weak yen.

A stronger dollar makes dollar-denominated commodities more expensive for buyers using other currencies.

In Shanghai, the most-traded copper contract on the Shanghai Futures Exchange hit its highest since June 3 at 106,760 yuan per ton, driven by domestic supply shortages.

Craig Lang, chief analyst at CRU, said trade flows continue to head toward the United States, driven by the price spread between the Chicago Mercantile Exchange and the London Metal Exchange, ahead of Washington's decision on imposing tariffs on refined copper.

He added that smelter maintenance and the impact of hurricanes on storage are squeezing supplies in China, while a shortage of scrap metal is boosting demand for refined copper.

The Yangshan copper premium, an indicator of Chinese import demand, rose to its highest since November 2022, at $115 per ton on Wednesday.

In other metals markets, LME aluminium rose 0.7% to $3,179 per ton, zinc gained 0.9% to $3,585.50, lead climbed 0.5% to $1,877.50, nickel rose 0.3% to $17,135, and tin added 0.4% to $54,100.