Copper hovers below record high as non-US supply tightness remains in focus

COMEX copper inventories (HG-STX-COMEX) continued to climb, reaching 797,275 short tons, or 723,275 metric tons as of Tuesday.

Some analysts now expect copper prices to touch the $15,000 level for the first time as soon as this week.

“The rally looks increasingly policy-driven,” ING said in a note on Wednesday, adding that prices could correct sharply if tariffs are delayed or ruled out while demand remains subdued.

In China, the world’s biggest copper consumer, factory-gate inflation accelerated in August, lifted by rising energy costs, but underlying domestic demand remained subdued.

Producer prices rose 3.8% from a year earlier, up from 3.5% in July, while consumer inflation quickened to 0.8% from 0.5%.

Among other LME metals, aluminium (CMAL3) fell 0.25%, zinc (CMZN3) dropped 0.56%, lead (CMPB3) slipped 0.16%, nickel (CMNI3) declined 1.08% and tin (CMSN3) eased 0.11%.

On SHFE, aluminium (SAFcv1) rose 0.49%, zinc (SZNCv1) added 0.04% and lead (SPBcv1) gained 0.50%, while nickel (SNIcv1) fell 0.23% and tin (SSNcv1) dropped 0.32%.

($1 = 6.7077 Chinese yuan renminbi)

Copper dipped below its record high on Wednesday as inventories continued to build in the United States ahead of a possible tariff on refined copper imports, tightening availability elsewhere.

Benchmark three-month copper on the London Metal Exchange (CMCU3) fell 0.55% to $14,628 a metric ton by 0245 GMT, after touching an all-time high of $14,779 on Tuesday.