Copper: Prices supported by tightening stocks – ING

ING’s Warren Patterson and Ewa Manthey report that Copper prices edged higher on progress in US-Iran talks, which eased transit and inflation concerns. They note that falling SHFE and LME inventories underpin fundamentals, while Chinese refined Copper output rose in May on better smelter margins. The analysts emphasize that tightening exchange stocks continue to support the Copper market.

Transit optimism and falling inventories

"LME copper prices edged higher yesterday, supported by reports of progress in US-Iran talks. This bolstered expectations for uninterrupted transit through the Strait of Hormuz and eased inflation concerns."

"Market fundamentals also remained supportive, with inventories continuing to decline across exchanges."

"SHFE stocks fell to the lowest level since December 2025, while LME stocks hit March 2026 lows."

"Data from China's National Bureau of Statistics, meanwhile, showed refined copper output rose 2.2% year-on-year to 1.3mt in May."

"Output was supported by higher sulphuric acid by-product prices, which boosted smelter margins and encouraged stronger operating rates."

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