China's Tight Physical Market Fuels LME Copper Gains

LME Copper prices have extended their gains for six consecutive sessions due to tight physical market conditions in China. According to ING analysts Ewa Manthey and Warren Patterson, falling inventories and holiday-related restocking are driving consumption ahead of the Mid-Autumn Festival and National Day holidays. Shanghai copper cathode inventories have dropped to 43,900 tonnes, their lowest level since December 2023.

Despite higher prices, investor positioning across base metals remains subdued. Net bullish Copper futures positions have declined for six consecutive weeks, falling by 3,981 lots to 42,132 lots, which is the lowest level since late March.