Copper prices fell on Wednesday as rising inventories eased supply concerns, despite record premium offers from producers for next year’s physical deliveries. Three-month copper on the London Metal Exchange dropped 0.4% to $14,364 a metric ton by 1615 GMT, down from its three-week high of $14,700 reached on October 14.
LME inventories surged by 11,475 tons, marking an 8% increase over the past week. Available stocks, those not reserved for removal, jumped 40% in the same period. Macquarie analyst Alice Fox noted that current copper prices are significantly higher than justified by global stock levels, predicting surpluses for the next few years.
The most-traded November copper contract on the Shanghai Futures Exchange closed 0.2% higher at 109,390 yuan ($16,379.43) a ton. While global inventories are high, regional shortages persist, particularly in Europe, where buyers face record premiums for 2027. Chile’s Codelco is offering a record-high premium of $350 per ton over the LME price to European customers.
Nickel was the top performer on the LME, rising 4.1% to $16,310 a ton, its highest in over three weeks. This surge was attributed to potential production cuts by Chinese producers in Indonesia. Among other metals, aluminium gained 1.2%, zinc rose 0.5%, and lead added 0.7%, while tin fell 0.5%.