Copper Prices Consolidate at Highs Amid Tight Supply and Sluggish Demand

Copper prices continued to consolidate at highs on the London Metal Exchange (LME) last week, but the LME payable indicator for ex-China copper scrap remained stable.

The stability of the LME payable indicator was supported by low inventory levels and spot premiums for copper cathode, which stayed high recently. Downstream enterprises in major consuming regions such as China, Japan, South Korea, and India had limited available cargo due to tight supply patterns, with some traders even using spot premiums for copper cathode to support their offers.

However, despite the stable LME payable indicator, downstream players showed a cautious procurement pace last week, with limited willingness to restock due to high copper prices. As a result, market trading sentiment remained relatively sluggish.

Looking ahead to next week, the tight supply of ex-China copper scrap and low inventory levels are expected to persist, providing some support to the LME payable indicator. However, with demand continuously suppressed by high copper prices, some traders may moderately cut their offers to meet cash recovery needs, potentially driving a slight pullback in the LME payable indicator.