Copper Edges Higher Amid Supply Concerns

Copper prices have remained stable on Friday, setting the metal up for a 3% gain in July. The three-month copper benchmark on the London Metal Exchange held steady at $13,798 per metric ton after reaching its highest level since July 22.

According to ING commodities strategist Ewa Manthey, 'Copper enters August with supportive fundamentals.' Despite a recent wave of demand in China fading, the market still faces a supply deficit and limited inventory buffers outside the US. This leaves prices vulnerable to further disruptions or stronger demand.

The available copper stocks in LME-registered warehouses fell 50% in July to 101,650 tons, their lowest level since mid-January. The premium of the cash LME copper contract over the three-month forward was at $40 per ton on Thursday, its seven-month high.