Copper Soars as Global Inventories Plummet

Copper prices have surged due to dwindling inventories in key exchange stockpiles, particularly in London and Shanghai. According to the London Metal Exchange (LME), stockpiles fell to 244,025 metric tons from roughly 400,000 tons in April, while the Shanghai Futures Exchange (SHFE) saw its stocks drop to about 69,300 tons from more than 430,000 tons in March.

This decline in inventories is significant because these exchanges serve as major 'delivery pools' for many buyers outside the US. As a result, falling stocks can make nearby metal harder to source and drive up the premium for prompt delivery.

Meanwhile, oil prices have remained steady amidst conflicting comments from US and Iranian officials regarding supply risks. Traders are left guessing about the path forward, which can impact metals through energy and shipping costs.