Citi maintains bullish copper price targets on supply pressure

Lower visible inventories ex-U.S., notably in China, and rising China import demand are symptoms of underlying physical constraints, it added.

Citi also noted that mine supply remains under pressure globally and response from the scrap market year-to-date to higher prices appears soft.

Chile mine supply risks and sulphur constraints can aid sentiment at the margin, the bank said.

Citi maintained on Monday its bullish copper price targets through the end of the year, citing tighter physical markets and supply pressure in China.

• The bank held its $14,500 per metric ton zero- to three-month target and its $15,000 per ton year-end target.
• Benchmark copper <CMCU3> on the London Metal Exchange traded near $13,770 a ton in official rings [MET/L].
• "While demand growth remains tepid, supply is under much greater pressure," Citi said in a note.

"Prices have held up over the last month despite some moderation in speculative positioning length and broader commodity weakness," Citi said.