LME, SHFE Copper Prices Soar on Tight Supply and Bullish Positioning

Copper prices in both LME and SHFE markets saw significant gains overnight, with the LME copper closing at $14,728/mt, up 1.61%, while the most-traded SHFE copper 2610 contract closed at 111,300 yuan/mt, up 0.94%.

The tight supply in the market, coupled with bullish positioning, drove the prices higher. The trading volume reached 27,300 lots for LME and 50,000 lots for SHFE, while open interest increased by 453 lots and 13 lots respectively.

On the macro front, tensions in the Middle East continue to escalate, with the US and Iran attacking oil tankers in succession and Saudi energy facilities being struck again by Houthi forces. Rising oil prices fueled concerns about upward inflation, but the market remains cautious and wait-and-see, awaiting this week's CPI data.

Copper prices are expected to consolidate on a strong note today, with tight supply and persistently low LME and SHFE inventory supporting copper prices.