Copper falls as inventories rise and supply worries ease; nickel climbs
XLB•Copper fell 0.4% to $14,364 a ton as LME inventories rose 11,475 tons, while nickel gained 4.1% to $16,310 on prospects of coordinated production cuts by Chinese producers in Indonesia.
1. Copper inventories climb
Three-month copper on the London Metal Exchange fell 0.4% to $14,364 a ton by 1615 GMT after LME inventories rose 11,475 tons, an 8% gain in a week. Available stocks rose 40% over the same period. Macquarie analyst Alice Fox said copper was above where it ought to be given global stocks and forecast surpluses for the next few years.
2. Regional supply differences
Despite high global inventories, large amounts are in the United States, creating shortages elsewhere, including Europe. Codelco is offering European customers a record-high premium of $350 per ton over the LME price for 2027 deliveries. Shipments have flowed to U.S. warehouses since Washington launched an investigation into copper imports in February 2025, leaving COMEX facilities with roughly 70% of global exchange-visible inventories.
3. Nickel leads gains
Nickel rose 4.1% to $16,310 a ton, its highest in more than three weeks. Britannia Global Markets' Neil Welsh cited the prospect of coordinated production cuts by Chinese producers operating in Indonesia; earlier this month, Indonesia discussed a moratorium on developing new nickel processing facilities that produce partly processed metals.
