Copper Prices Stabilize as Demand Concerns Grow
Copper prices continued to rise on Wednesday but remained below yesterday's highs as waning inventories and improving risk sentiment provided support despite high prices weighing on demand.
The benchmark three-month copper price on the London Metal Exchange (LME) was up 0.18% at $14,091.5 a metric ton by 0700 GMT, while the most-traded copper contract on the Shanghai Futures Exchange rose 0.96% to 107,340 yuan ($15,908.82) a ton.
The red metal has been buoyed by dwindling inventories as more material was pulled into the U.S. ahead of potential tariffs on refined copper. Total copper stocks on LME-registered warehouses have fallen by nearly 40% since the end of May.
Daniel Hynes, senior commodity strategist at ANZ, noted that 'the US imported more than 200,000 tons of copper in July, the biggest monthly inflow since 2014.'