Copper Rally Slows as High Prices Threaten Demand

Copper prices continued their upward trend on Wednesday but remained below yesterday's highs due to high prices threatening demand. Benchmark three-month copper on the London Metal Exchange rose by 0.18% to $14,091.5 a metric ton.

The most-traded copper contract on the Shanghai Futures Exchange increased by 0.96% to 107,340 yuan ($15,908.82) a ton. This is the second day in a row that prices have passed the psychological level of $14,000 a ton for the first time since early June.

The copper market has been supported by waning inventories and improving risk sentiment. Daniel Hynes, senior commodity strategist at ANZ, noted that 'the US imported more than 200,000 tons of copper in July, the biggest monthly inflow since 2014.'

However, high prices are starting to weigh on demand, with analysts from Chinese broker Everbright Futures warning about the strength of seasonal demand in the second half of the year.