Copper: Tight supply keeps prices elevated – ING
ING analysts Warren Patterson and Ewa Manthey report Copper prices trading above $14,000/t on the LME and near record levels on Comex, driven by metal diversion into the US ahead of potential tariff decisions.
ING analysts report elevated copper prices above $14,000 per tonne on LME and near record levels on Comex. The surge is attributed to metal diversion into the US before potential tariff decisions, resulting in tight physical markets and low inventories outside the US. Supply-side challenges further support prices and may heighten volatility in upcoming sessions.
Copper gains are also evident in base metals, with LME copper surpassing $14,000/t and Comex futures nearing record levels. The market remains influenced by the US metal diversion, leaving limited availability elsewhere and bolstering prices globally. Positive Middle East sentiment contributed to industrial metals, while improved US dollar prospects after Strait of Hormuz negotiation hopes dampened inflation concerns and bolstered global growth assets.
Copper fundamentals remain supportive, with tight markets and ongoing supply constraints maintaining price strength. Potential US tariff policy shifts could introduce near-term volatility. Aluminium and zinc also experienced price increases alongside copper.
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