Copper: Tight inventories sustain price support – ING

ING analysts Warren Patterson and Ewa Manthey say Copper remains underpinned by tight LME inventories and strong US-bound flows. They highlight a sharp rise in cancelled warrants, renewed withdrawals from warehouses, and elevated US premiums, while noting that record-high prices are starting to raise demand concerns in China even as Copper stays up nearly 15% year-to-date.

LME draws and US flows dominate

"Copper edged higher after fresh withdrawals from LME warehouses renewed concerns over tight exchange inventories. LME cancelled warrants increased by 51.4kt, the largest daily rise since May."

"Recent deliveries into LME warehouses helped ease some of the tightness. However, the latest withdrawal suggests that any recovery in inventories may prove temporary."

"Inventory movements remain a key focus, with exchange stocks still relatively low."

"Copper remains supported by strong metal flows into the US."

"For now, tight inventories and continued US-bound flows remain the dominant drivers, leaving the market vulnerable to further bouts of tightness and volatility."

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