Copper Prices Supported by Tight Inventories, Strong US Flows

Copper prices continue to benefit from tight inventories and strong US-bound flows. According to ING analysts Warren Patterson and Ewa Manthey, the market remains underpinned by these factors.

The latest data shows that LME cancelled warrants increased by 51.4kt, the largest daily rise since May. This is a clear indication of tight exchange inventories.

However, recent deliveries into LME warehouses have helped ease some of the tightness, and this may prove temporary. Inventory movements remain a key focus, with exchange stocks still relatively low.

The strong metal flows into the US continue to support copper prices. For now, these factors dominate the market, leaving it vulnerable to further bouts of tightness and volatility.