Copper Prices Ease on LME Inventory Build and Weaker Chinese Data

Copper prices have taken a breather after a surge in metal deliveries to London Metal Exchange (LME) warehouses and softer Chinese economic data. The recent influx of copper into LME storage facilities has eased concerns about tight supply, with 17,450 tons flowing in on Monday, including 7,250 tons in the US.

This fresh deliverable supply has given traders a reason to reassess their positions, pulling the cash-to-three-month spread down to $270.70 a ton from as much as $545. ING's Ewa Manthey noted that the size of the inflows suggests the most extreme tightness may be easing.

The recent Chinese economic data has also had an impact on copper prices, with July factory output rising 4.5% from a year earlier but missing expectations, and fixed-asset investment falling 6.7% over the first seven months of 2023.