Copper prices hit 6-month peak on low inventories
LONDON: Copper prices hit their highest in more than six months on Monday due to worries about availability on the London Metal Exchange, where inventories are at their lowest since February. Benchmark copper was up 0.9% at $14,290 a metric ton at 0923 GMT from an earlier high at $13,396. Prices of the metal used in the power and construction industries hit an all-time high at $14,527.5 in…
Copper prices reached a six-month high on Monday as concerns over limited supplies on the London Metal Exchange rose. The benchmark metal was up 0.9% at $14,290 per metric ton, with prices peaking at $14,527.5 in January. Inventories in LME-approved warehouses have dwindled by half since May, dropping to less than 210,000 tons. Traders are moving copper to the United States to avoid potential tariffs on imports.
Analyst Albert Mackenzie predicts record-high July imports for copper, which have been strong throughout the year. The premium for nearby copper contracts versus longer-dated forwards hit the highest level since November 2021 at $416.29. Copper deliveries to LME warehouses exceeded 3,700 tons, while outflows were only 850 tons. Stock levels in Comex-registered warehouses surged nearly 700% since February, when U.S. President Donald Trump suggested import tariffs.
Copper inventories in Shanghai Futures Exchange warehouses fell over 80% since mid-March to 69,731 tons. Despite a drop in the Yangshan premium, copper remains 350% more expensive than in January. Weaker U.S. currency boosts industrial metals, making dollar-priced commodities more affordable for foreign investors. Aluminium, zinc, lead, tin, and nickel also saw price increases.
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