Copper prices hit 6-month peak on low inventories

Business Recorder reported that copper climbed to its loftiest level for over half a year on Monday. Concern about supply on the London Metal Exchange, where inventories have fallen to their lowest point since February, underpinned the rally. By 0923 GMT, benchmark copper was 0.9% higher at $14,290 a metric ton.

Warehouses approved by the LME now hold under 210,000 tons after halving since May. Metal shipments to the United States ahead of possible levies on refined copper imports have drawn supply away from the exchange. Cancelled warrants and metal set aside for delivery at 50% point to more copper leaving the LME system.

Albert Mackenzie of Benchmark Mineral Intelligence expects record July imports, although official data has not yet been published. Traders said backwardations and premiums should draw metal back to the LME. The cash premium over the three-month contract closed Friday at $416.29, its highest since November 2021. Meanwhile, stocks in Comex-registered warehouses have risen nearly 700% since tariffs were floated in February last year, and Shanghai Futures Exchange inventories are down more than 80% since mid-March.