Copper Prices Surge as Inventories Plummet and Oil Prices Drop
Copper prices rose to their highest in over a week on Monday due to falling inventories and easing demand fears. Benchmark copper on the London Metal Exchange was up 0.6% at $13,876 a metric ton by 0903 GMT after touching $13,900 a ton for its highest since July 22.
The drop in oil prices following US President Donald Trump's call off of a fresh attack on Iran has also alleviated anxiety about economic growth and demand. Traders said the underlying fundamental picture for copper looks supportive, with inventories in both China and London Metal Exchange warehouses in a state of depletion.
Copper stocks in LME-registered warehouses have fallen nearly 40% since the end of May to their lowest since February at 244,025 tons. Producers and traders have been shipping copper to the United States since February last year when President Donald Trump threatened import tariffs, creating a premium for US copper over LME prices.