Copper Prices Hover Near Record Highs Amid Supply Deficit

Copper prices on the London Metal Exchange (LME) and COMEX have continued to hover near record highs, supported by dwindling inventories and a global supply deficit. According to Geojit Investments Ltd's Commodity Weekly Insights report, copper prices in LME gained over 2% in the past month, while SHFE copper rose by 1.2%. In contrast, COMEX Copper posted moderate gains.

The Democratic Republic of Congo's decision to ban exports of copper and cobalt concentrates has further intensified concerns about potential disruptions to global supply chains. China's refined copper production increased by 1.3% year-over-year in July, reaching 1.29 million metric tonnes, according to the report.

Despite a stronger U.S. dollar and renewed geopolitical tensions in the Middle East, copper prices remained firm. However, gains were partially capped by these factors, which weighed on market sentiment and raised concerns over global economic growth and potential demand risks for industrial metals like copper.