Copper: Near record highs on tight supply – ING

ING’s Warren Patterson and Ewa Manthey report Copper trading comfortably above $14,000/t, close to record highs, supported by tariff-related stockpiling into the US and tight physical markets elsewhere. They flag low inventories, constrained mine supply and ongoing disruptions as key supports. However, they warn that any disappointment on US tariff measures could trigger a consolidation phase in Copper prices.

Copper supported but vulnerable to tariffs

"Copper traded near record highs, with LME prices trading comfortably above $14,000/t, amid tariff-related stockpiling into the US and increasingly tight physical conditions outside the country. The latest move higher was also fuelled by reports that the DRC had moved to restrict exports of copper concentrates. While the headlines initially raised supply concerns, the impact on the refined market is likely to be limited given that most of the DRC's copper is exported as cathode rather than concentrate."

"Even so, the news reinforced an already bullish market backdrop characterised by low inventories, tight concentrate availability and ongoing supply disruptions."

"Copper fundamentals remain supportive. Tight physical markets, low inventories and constrained mine supply should continue to underpin prices. With copper trading close to record highs, any disappointment on US tariff measures could trigger a period of consolidation."

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