Copper falls on LME stock buildup, weak China data
XLB•Other base metals also weaken
Aluminium CMAL3 dipped 1.6% to $3,215.50 a ton, zinc CMZN3 fell 1.8% to $3,701, tin CMSN3 shed 1.6% to $54,860 and nickel CMNI3 slipped 0.3% to $16,785. Lead CMPB3 was the sole metal not to lose ground, trading flat at $1,886.50.
Stronger warehouse inflows seen as tightness begins to ease
"The large inflows into LME warehouses suggest the market's extreme tightness may be beginning to ease," said ING commodities strategist Ewa Manthey.
"Combined with softer Chinese factory output and fixed asset investment data, that has taken some momentum out of copper prices and could support a deeper pullback near term, though we would view that as a near-term setback rather than a sign that copper's fundamental outlook has materially weakened."
China's factory output grew 4.5% in July from a year earlier, missing expectations, while fixed-asset investment, which includes investment in key metal-consuming sectors such as real estate and infrastructure, contracted 6.7% in the first seven months of 2026.
A jump in long-term borrowing costs to their highest levels in decades was also weighing on sentiment in base metals.
Copper eases after LME inventories rise and China data disappoints
Copper slipped on Tuesday, easing from a six-month high hit in the previous session, as London Metal Exchange inventories climbed for a second day and the market digested disappointing economic data from China as well as rising borrowing costs.
Benchmark three-month LME copper CMCU3 was down 1.1% at $13,996.50 per metric ton as of 1600 GMT. It earlier dipped as much as 1.4% to $13,958.
The latest LME stocks data showed another 17,450 tons of copper inflows on Monday, including 7,250 tons in the U.S., as well as 2,575 tons of reverse cancellations, where metal earmarked for removal from a warehouse is put back on warrant.
