Copper Prices Steady Amid Shrinking LME Inventories
Copper prices have remained steady despite a weakening US dollar, which has contributed to their recent stability. The London Metal Exchange (LME) warehouse stockpiles have been dwindling, with total copper inventories falling by 21.38% in July to 255,400 tons.
What's more striking is that over 60% of the remaining inventory is under 'canceled warrants', metal earmarked for withdrawal but not yet delivered. This has led some market observers to question whether the headline stock numbers accurately reflect the available supply.
The market has been driven by physical tightness, with copper being pulled into the US ahead of potential tariffs and Chinese buyers opting for refined copper due to tight scrap supply. The Yangshan copper premium, a key indicator of China's import demand, stands at $112 per ton.