Copper hovers below record high as non-US supply tightness remains in focus

Business Recorder reported that copper slipped under its record peak on Wednesday as US stockpiles kept growing before a potential levy on refined copper shipments. The London Metal Exchange's three-month contract shed 0.55% to $14,628 per metric ton at 0245 GMT, after peaking at $14,779 the previous day. In Shanghai, the main copper future gained 0.44%, reaching 110,740 yuan ($16,509.38) per ton.

COMEX stocks totalled 723,275 metric tons (797,275 short tons) as of Tuesday and kept rising. StoneX's Natalie Scott-Gray put US arrivals at over 1.2 million metric tons since February last year, which she said has left supplies elsewhere at historically low levels. Some analysts see the metal reaching $15,000 for the first time before the week is out. Investor positioning has also grown stretched, with COMEX managed-money longs near five-year highs.

ING's view is that the surge is becoming more dependent on policy, and it warned prices could fall sharply if tariffs are postponed or scrapped while demand stays weak. In China, the largest copper user, factory-gate inflation picked up in August on higher energy costs, though domestic demand stayed soft. Producer prices climbed 3.8% year on year in August, against 3.5% the month before, and consumer inflation edged to 0.8% from 0.5%.