Copper Prices Fall as Inventory Build-Up Eases Supply Tightness

Copper prices fell on Monday as rising inventory levels in exchange warehouses weighed on the market. The three-month copper price on the London Metal Exchange dropped by 0.40% to $14,159 a metric ton.

The inventory build-up was evident across both the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE), with LME-monitored warehouses holding around 16% more metal than their lowest levels in February.

The narrowing of nearby spreads on the LME also pointed to easing supply tightness, further contributing to the decline in copper prices. The premium of cash copper against three-month copper continued to narrow, surging to its widest since August 2021 last week.