Copper Prices Consolidate Amid Supply Disruptions and Tariff Uncertainty

Copper prices have been trading in a tight consolidation range between $6.50 and $6.80, with the market showing little movement despite strong recent gains. The metal is just 3% off its August record high.

The London Metal Exchange (LME) warehouses are currently holding 100,050 tons of copper, down from 166,000 tons a week earlier. However, total stocks were still building up at the end of the month.

Supply disruptions in some major mines, including the Kamoa-Kakula mine, could lead to a reduction in copper supply by as much as 57,000 tons. Ivanhoe has already cut its guidance for this year's production from 380,000 tons to 300,000 tons due to seismic damage.

In the long term, the outlook for copper remains positive due to the ongoing electrification of the economy, according to Christopher Lewis, a technical analyst at DailyForex. He remains bullish on copper despite some potential headwinds, including unresolved tariffs in the US and interest rates remaining high.