Copper Falls as Inventories Ease Supply Concerns
Copper futures fell to around $6.55 per pound on Monday, retreating from recent gains as a sharp build-up in exchange inventories eased concerns over near-term supply tightness. LME-monitored copper inventories stood at 238,575 tons on August 20, about 16% above their February low, while SHFE-monitored stocks jumped 28.4% last week to 89,548 tons. The rise ...
Copper prices dipped on Monday, dropping to around $6.55 per pound, as inventories in exchange warehouses expanded significantly, alleviating worries about potential supply constraints. The London Metal Exchange (LME) recorded copper stocks at 238,575 tons on August 20, which was approximately 16% higher than their February minimum.
In addition, stocks monitored by the Shanghai Iron and Steel Exchange (SHFE) increased by 28.4% last week, reaching 89,548 tons. These rising inventories, combined with a substantial decrease in the LME cash premium over three-month copper, indicated stronger availability in the near term and put downward pressure on prices.
The build-up in inventories, coupled with the narrowing gap between the LME cash price and the three-month copper contract, suggested that supply was becoming more abundant, which dampened expectations for further price increases. Meanwhile, Zijin Mining, a major copper producer, cautioned that flooding at its Kamoa-Kakula copper complex in the Democratic Republic of Congo could cut its production by up to 57,000 tons in the current year, underscoring ongoing risks to global supply.
Other factors also played a role in the price decline. A weaker US dollar helped to temper the fall, while market participants remained on the lookout for insights from the upcoming Jackson Hole economic symposium and the Federal Reserve Chair's speech for any hints about future interest rate decisions.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
