Copper Prices Stabilize Amid Easing Supply Worries
Copper futures have stabilized after plummeting to seven-week lows as fresh deliveries to London warehouses alleviated supply concerns. On Tuesday, copper traded near $6.3 per pound, a slight recovery from its sharp decline earlier this month.
The surge in deliveries to London Metal Exchange monitored warehouses has pushed prices into contango, signaling ample availability of the metal. This shift is a welcome relief for traders who had been worried about supply shortages.
Copper prices skyrocketed to record highs last week due to traders redirecting shipments to US warehouses ahead of potential tariffs on refined metal. However, after reports emerged that the Trump administration had postponed its decision on the matter, copper prices plummeted sharply.
The broader metals complex remains under pressure as investors await an expected US Federal Reserve interest rate hike this week. Meanwhile, data from top consumer China shows industrial output expanded more than expected in August, but retail sales and fixed asset investment indicate continued weakness in economic activity.