ING commodities strategists Warren Patterson and Ewa Manthey note that Copper prices have come under pressure following a sharp increase in exchange inventories. LME Copper stocks have risen to their highest level since 2019, driven by inflows into Taiwan and Baltimore. Weaker Chinese demand, slower US shipments due to tariffs, and softening speculative positioning are all weighing on the industrial metal.

Rising stocks and softer positioning

"In industrial metals, copper fell amid a sharp rise in exchange inventories, signalling softer physical demand. Total LME copper inventories jumped by 18,775 tonnes to 330,375 tonnes. This is the highest since September 2019, with most inflows into Taiwan and Baltimore."

"Inventories have trended higher this year amid weaker Chinese demand and reduced shipments to the US as tariffs slow trade."

"Meanwhile, speculative positioning in copper continued to soften, with net bullish bets falling by 284 lots to 32,788 lots. This marks the least bullish position since October 2023."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)