Copper Prices Hit Three-Week Lows Amid Escalating Tensions
Copper prices hit their lowest levels in over three weeks on Tuesday, falling as inventories at the London Metal Exchange (LME) rose nearly 20% since mid-August to 242,900 tons.
The increase in LME copper stocks was due to elevated premiums for nearby contracts against longer-dated forwards, which traders expect will lead to a decrease in deliveries.
The possibility of tariffs on US copper imports, previously hinted at by sources close to the matter, also contributed to the decline in prices.
Copper prices are currently supported around $13,755, the 100-day moving average, and face resistance at $14,270, the 21-day moving average. Analysts warn that concerns about oil supplies due to escalating tensions in the Middle East will weigh on growth, manufacturing activity, and demand for metals.