Bullish
Copper prices rise 2% amid supply concerns and strong Chinese demand
Over the past week, copper prices have increased by 2%, driven by concerns over mine supply disruptions and robust demand from China. The Yangshan copper premium, a key indicator of China's appetite for imported copper, reached a four-year high of $135 per ton, signaling strong demand. Additionally, tight visible inventories outside the U.S. have contributed to upward price pressure.
Key points
- Concerns over mine supply disruptions, including potential strikes at major copper mines, have heightened market apprehension.
- The Yangshan copper premium, a gauge of China's demand for imported copper, reached a four-year high of $135 per ton, indicating strong demand.
- Copper inventories in Shanghai Futures Exchange warehouses increased by 20,000 tons from the end of September, suggesting a potential easing of supply tightness.
- Copper stocks in LME-registered warehouses dropped to a six-week low of 233,025 tons, indicating a tightening supply outside the U.S.
Sources
AI-generated from public news sources. Not financial advice.
