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| Copper Prices |
LME copper stockpiles surge amid softening demand
Copper price dips as London Metal Exchange (LME) inventories surged to the highest level since September 2019. As a result, the industrial metal faced downward pressure. LME stockpiles increased nearly 19,000 tons, totaling 330,375 tons. Meanwhile, physical demand weakened, particularly in China, where buyers paused due to record prices exceeding $14,500 earlier this year. Therefore, the copper market reflects growing bearish sentiment.
Global factors affecting copper and aluminum markets
However, aluminum recovered after a short slump, driven by uncertainty around the Iran conflict. Analysts warn that Strait of Hormuz closures restrict smelter shipments and raw material imports. Consequently, regional producers may reduce annualized output by up to 500,000 tons if disruptions continue. In contrast, electronic trading on the LME halted for over two hours due to technical failures, affecting aluminum, zinc, and other base metals. These factors simultaneously influence market volatility and investor sentiment.
Meanwhile, copper price dips are compounded by trade dynamics. Rush shipments to the US ahead of potential tariffs have slowed. Futures for copper declined 0.6%, settling at $12,775 per metric ton. As a result, buyers are cautious, weighing high prices against uncertain demand. In addition, other base metals experienced mixed trends, with nickel down 1.5% while aluminum rose slightly 0.1%.
ScrapInsight Commentary
The copper market shows mounting bearish pressures as high LME inventories persist. If demand in China remains soft, prices may test lower support levels despite global supply uncertainties. Aluminum volatility highlights supply chain risks and reinforces the need for circular economy strategies.
