Copper Rally Continues Amid Chinese Supply Woes

Copper prices continued their upward trend on Tuesday, extending a six-day rally as Chinese supply constraints tightened. London copper prices were heading towards a record amid reports of limited deliveries and low inventory levels in China.

According to Shanghai Metals Market (SMM), inventories across China's main regions fell to 74,800 tonnes on September 21, down 14,500 tonnes from the previous week. This shortage has led to increased buying ahead of the Mid-Autumn Festival and National Day holidays, further tightening supply.

The SMM also reported that while some imported copper arrived in China, most of it flowed directly to downstream processing enterprises, not entering warehouse statistics. This leaves less imported metal available for warehouse buyers, exacerbating the shortage.

Freeport-McMoRan Inc., a major copper miner, saw its shares rise 2.1% to $73.66 on the New York Stock Exchange as a result of the price increase. Hudbay Minerals Inc. also gained 2.4% to C$38.29 in Toronto.