Copper Nears All-Time High as China Restocks Ahead of Holidays

Copper prices have recovered from their recent selloff and are nearing an all-time high. The metal has been driven up by physical demand in China, where buyers are restocking ahead of back-to-back holidays and warehouse inventories have hit a three-year low.

In Shanghai, copper cathode stocks fell to 43,900 tons last week, the lowest since 2023, according to SMM data. Inventories in Shanghai Futures Exchange warehouses are down 70% since early June, with imported cargoes going straight to fabricators instead of storage.

The physical market conditions in China are providing support for copper prices, despite a firmer dollar and concerns over the global economy. Ewa Manthey, an ING commodities strategist, notes that falling inventories and seasonal restocking are offsetting the impact of a stronger US currency.