Copper Prices Hold Above USD14,000 per Metric Ton Amid Falling Inventories

Copper prices continued their upward trend on Wednesday, holding above the psychological level of USD14,000 per metric ton. The three-month LME copper contract was down just 0.1% at USD14,053 a metric ton in official open-outcry trading, but reached its highest level since May 14 at USD14,117 earlier in the day.

The London Metal Exchange (LME) reported that more metal was pulled out of LME-registered warehouses in Asia, with 6,525 metric tons of outflows on Tuesday. This has contributed to falling inventories, with total stocks now at 231,825 tons, the lowest since mid-February.

The premium of the LME cash copper contract over the three-month contract was last at USD103 a ton, the highest level since October. Analysts at RBC Capital Markets remain 'constructive' on the copper market due to physical and longer-dated tightening, supply disappointments, and uncertainty around tariffs.

Other metals also saw price increases, with zinc rising 0.5% to USD3,691 a ton after hitting a four-year high of USD3,709. LME available zinc stocks are at their lowest level since December, leading to short-term LME zinc contracts trading at a premium over longer maturities.