Copper Prices Supported by Low Inventories Amid Supply Disruptions
Copper prices have found support in persistently tight inventories, according to ING's recent analysis. Global copper stockpiles remain at historically low levels as of mid-2025, underpinning prices despite broader economic uncertainties.
The refined copper inventories across major exchanges, including the London Metal Exchange (LME), COMEX, and the Shanghai Futures Exchange, have been trending downward due to supply disruptions at mines and smelters, as well as steady demand from sectors like renewable energy and electric vehicles. The tightness is particularly pronounced in the concentrate market, where treatment charges have fallen to multi-year lows, indicating scarcity of raw material.
This has led some smelters to reduce output, further tightening refined supply. ING cautions that while tight inventory picture suggests copper prices may remain elevated in the near term, demand-side risks, including a potential slowdown in global manufacturing and construction, could weigh on prices later in the year. Price volatility is expected to persist as the market balances these supply constraints against macroeconomic headwinds.