Copper Rally Continues as China's Inventories Hit Four-Year Low

Copper prices have surged for the sixth consecutive day, putting the metal on track for its longest winning streak in four months. The rally is driven by falling inventories and pre-holiday buying in China, where supplies are tightening.

The Shanghai Metals Market reports that copper cathode inventories in Shanghai have fallen to 43,900 tons, the lowest since 2023. This comes as some imported copper has arrived in China, but much of it has gone directly to fabricators rather than warehouses, keeping spot supplies constrained.

Copper demand is also receiving a seasonal boost ahead of the Mid-Autumn Festival and National Day holidays. According to Shanghai Metals Market, downstream manufacturers are stocking up before the holiday period, which is contributing to the rally.