Copper falls to five-week low as LME inventory build continues
XLB•Copper fell 1.8% to $14,085 a metric ton, its lowest level in more than five weeks, as LME stocks rose for a fourth day to 272,950 tons. The stock build eased supply fears, while China’s Yangshan copper premium rose to its highest since October 2022.
1. Copper hits five-week low
Benchmark three-month copper fell 1.8% to $14,085 a metric ton in official LME trading, after touching $14,031, its lowest since September 15. LME warehouse stocks climbed for a fourth day, with 29,050 tons arriving on Wednesday, chiefly in New Orleans. Total stocks reached 272,950 tons, the highest since July 24, and about 62% of LME copper inventories are in the United States.
2. Inventory flows shift
Marex metals strategist Alastair Munro said the recent stock build reflected a shrinking COMEX premium as contract delivery dates approach. COMEX’s front contract is now at a discount to the LME, encouraging deliveries to LME warehouses; LME cash copper traded at a $93.50-a-ton premium to the three-month contract. In China, the Yangshan copper premium rose to $148 a ton on Wednesday, its highest since October 2022. Equity-market selling on doubts about the AI outlook weighed on industrial metals, with aluminium, zinc, lead, nickel and tin also declining.
