Copper Prices Edge Up Amid Tightening Chinese Inventories

Copper prices have ticked higher on Friday, with London Metal Exchange three-month copper at $13,615 a ton. This increase is largely due to shrinking exchange inventories in China.

The Shanghai Futures Exchange stocks fell 12.9% from last week to 69,610 tons, the lowest since February 2024, while headline LME inventories of 276,775 tons were the lowest since March. However, available stock on the LME rose 5.2% to 113,450 tons after some metal was rewarranted in South Korea and Taiwan.

But why should this matter? Record COMEX stocks of 639,147 metric tons can drag on the US price even with LME at $13,615. This is because trade rules might change, and traders have an incentive to position supply inside the COMEX system.