Copper Prices Hold Firm Amid Tight Inventories and US Demand

Copper prices remain strong due to tight London Metal Exchange (LME) inventories and solid flows into the US, according to ING analysts Warren Patterson and Ewa Manthey.

The LME cancelled warrants increased by 51.4kt, marking the largest daily rise since May and renewing concerns about limited exchange stocks.

Copper is up nearly 15% year-to-date, with record-high prices beginning to fuel demand worries in China.

ING analysts highlight that copper continues to find support from constrained inventories on the LME and solid flows into the US. They point to a notable pickup in cancelled warrants, renewed withdrawals from LME warehouses, and elevated US premiums as key signals of tightness in the physical market.