Copper falls as inventories rise, supply worries ease
LONDON: Copper prices dropped on Wednesday after inventories rose and worries over supply declined despite record premium offers from producers for next year’s physical deliveries. Three-month copper on the London Metal Exchange was down 0.7% to $14,319.50 a metric ton by 1040 GMT, having slipped from its highest in three weeks at $14,700 touched on October 14. LME inventories climbed by 11,475…
Copper prices declined on Wednesday following a rise in inventories and a decrease in supply concerns, despite producers offering significant premiums for next year's physical deliveries. The London Metal Exchange's three-month copper settled 0.7% lower at $14,319.50 per metric ton, down from its three-week high of $14,700 on October 14.
LME inventories increased by 11,475 tons, with available stocks also rising by 40% in the same period. Analyst Alice Fox noted that at this price level, copper is significantly above its expected level given global stocks. The Shanghai Futures Exchange's November copper contract closed 0.2% higher at 109,390 yuan ($16,379.43) per ton.
Although global copper inventories are abundant, a significant portion is held in the United States, leading to regional shortages elsewhere, such as Europe, where buyers are facing record premiums for 2027 deliveries. Chile's state-owned company, Codelco, offered a record premium of $350 per ton over the LME price to its customers.
Shipments have been directed towards American warehouses since the U.S. initiated an investigation into copper imports in February 2025, leaving COMEX facilities with about 70% of global exchange-visible inventories. Nickel experienced the greatest gain on the LME, rising 2.1% to $15,985 per ton, while aluminium and lead also showed positive movement. Zinc and tin, however, saw slight decreases.
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