Copper Prices Plunge Amid Stronger Dollar and Supply Concerns

Copper prices dropped by 0.27% to settle at 1,378.55 as the US dollar rebounded from its two-week low following stronger-than-expected employment data.

The US nonfarm payrolls rose by 162,000 in August, significantly exceeding expectations for a 56,000 gain.

Copper fundamentals remained mixed, with signs of tightening supply in some major markets. US refined copper and alloy imports reached a record 225,094 metric tons in July as traders built inventories ahead of potential US copper tariffs.

Copper inventories have increased for 53 consecutive days to a record 764,597 short tons, while uncertainty over the proposed tariff continues to influence global trade flows. The Shanghai Futures Exchange copper inventories declined 13% week-on-week to 63,000 tons, their lowest level since January 2024.

The global refined copper market recorded a 60,000-ton deficit in June compared with a 15,000-ton surplus in May, although the first-half surplus widened to 131,000 tons. Chinese copper imports also weakened, with unwrought copper and copper product imports falling 11.5% year-on-year in July.