Copper: LME stock jump eases supply squeeze – ING

ING’s commodities team highlights that Copper prices on the LME have retreated sharply, falling below $14,000/t as a significant increase in on-warrant inventories eases the previous supply squeeze. Spreads have narrowed in response, while speculative net long Copper positions have been trimmed, signalling a moderation in bullish sentiment over the coming days and weeks.

Rising LME stocks pressure copper

"LME copper prices fell below $14,000/t yesterday, posting their sharpest decline since 23 July, as fresh deliveries into LME warehouses eased a prolonged supply squeeze."

"On-warrant copper inventories rose by 20,025 tonnes, the largest daily increase since 7 April, extending gains for a sixth consecutive session to 123,100 tonnes."

"The increase in stocks helped alleviate tightness after inventories had been depleted by strong shipments to the US, driven by tariff-related arbitrage opportunities."

"Reflecting the improved supply situation, the LME cash/3M copper spread narrowed to $248/t, while the tom-next spread also retreated after recently reaching levels last seen during the 2021 copper squeeze."

"The latest COTR data showed speculators cut net long copper positions by 6,340 lots to 53,914 lots, ending a two-week streak of increases despite higher copper prices."