Copper Rally Slows as High Prices Dampen Demand
Copper prices have been buoyed by waning inventories as more material was pulled into the US ahead of potential tariffs on refined copper, according to Daniel Hynes, senior commodity strategist at ANZ.
Total copper stocks on LME-registered warehouses have fallen by nearly 40% since the end of May, with the most-traded copper contract on the Shanghai Futures Exchange rising 0.96% to 107,340 yuan ($15,908.82) a ton.
The red metal has been in a rally, passing a two-month high on Tuesday and surmounting the psychological level of $14,000 a ton for the first time since early June.
However, high copper prices are beginning to weigh on demand, raising questions about the strength of seasonal demand in the second half of the year, analysts from Chinese broker Everbright Futures said.