Copper: Chinese tightness supports prices despite weak positioning – ING
ING analysts Ewa Manthey and Warren Patterson report that LME Copper has extended gains on tight physical conditions in China, falling inventories and holiday-related restocking, even as investor positioning remains subdued.
Chinese tightness in copper markets is bolstering prices, despite subdued investor positioning, according to ING analysts Ewa Manthey and Warren Patterson. LME Copper has witnessed consecutive gains since Tuesday, the longest streak since May, as tight physical market conditions in China support prices. Falling inventories, restocking due to holiday season, and seasonal demand ahead of Chinese festivals have driven consumption.
Shanghai copper cathode inventories dropped to 43,900 tonnes, the lowest since December 2023. While imported copper shipments have risen, most have been directed straight to fabricators, maintaining tight spot supplies. Investor positioning in copper, based on COTR data, has fallen to its lowest level since late March, marking a sixth weekly decline, despite higher prices. Aluminium and zinc also saw net long positions decline for the fourth straight week.
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