London copper eases on fading supply fears
XLB•London copper fell 0.37% to $14,269.5 a metric ton as rising warehouse stocks eased supply concerns, while Shanghai copper rose 0.65%. The global refined copper market moved to a surplus in August.
1. Copper prices diverge
Three-month copper on the London Metal Exchange was down 0.37% at $14,269.5 a metric ton by 0700 GMT on Monday, while the most-traded Shanghai Futures Exchange contract rose 0.65% to 108,830 yuan a ton. LME-registered warehouse stocks rose last week to their highest level since July, following large deposits, mostly in North America.
2. Supply and demand signals
A potential U.S. tariff on refined copper imports has drawn metal into the country, thinning stocks elsewhere and helping push LME copper to a record $14,875 a ton on September 11. Marex strategist Alastair Munro said macroeconomic concerns and expectations of a shift in U.S. metal demand were contributing to a perceived bearish backdrop. China's Yangshan copper premium reached $168 a ton on Friday, its highest since 2014, while SHFE-monitored warehouse stocks fell more than a quarter to 54,356 tons last week. The global refined copper market moved to a surplus in August, data released by the International Copper Study Group showed.
