Copper falls as rising inventory weighs

Business Recorder reported that copper prices in London slipped on Monday, with rising exchange stocks and a tighter nearby price gap suggesting supply pressure is easing. On the London Metal Exchange, three-month copper was 0.40% lower, quoted at $14,159 per metric ton at 0321 GMT. A weaker US dollar, hovering near multi-month lows, limited the losses.

In Shanghai, the September copper contract, the most actively traded, climbed 0.48% to 107,800 yuan ($16,034.75) a ton, though part of Friday's evening gains had faded. The LME cash premium over three-month copper kept narrowing, having reached its largest level since 2021 on August 17 amid a squeeze in nearby supplies that drew metal into warehouses. LME warehouse copper holdings fell by 0.56%, to 238,575 tons, on August 20, yet still sat about 16% above the 204,975 tons seen on August 14, which was the lowest since February.

Stockpiles at the Shanghai Futures Exchange grew 28.4% to 89,548 tons on Friday, a sharp weekly rise. On-warrant copper holdings grew by 12,429 tons, reaching 46,105 tons. Rising stocks on both exchanges and a faster unwinding of LME backwardation have reduced the near-term supply worries that lifted prices last week. Other LME metals were mixed, with aluminium up 0.09%, zinc down 0.47%, lead up 0.18%, nickel down 0.46% and tin down 0.73%.