Tight Inventories Support Copper Prices Amid Broader Economic Uncertainty

Copper prices have found support due to tight inventories, according to ING's analysis. As of mid-2025, global copper stockpiles remain at historically low levels, underpinning prices despite broader economic uncertainties.

Supply disruptions at mines and smelters, combined with steady demand from sectors like renewable energy and electric vehicles, have driven the drawdown in refined copper inventories across major exchanges. Treatment charges in the concentrate market have fallen to multi-year lows, indicating scarcity of raw material and leading some smelters to reduce output.

For investors, the tight inventory picture suggests that copper prices may remain elevated in the near term. However, ING cautions that demand-side risks, including a potential slowdown in global manufacturing and construction, could weigh on prices later in the year.