Key Moments
- LME copper inventories increased by 18,775 tonnes to 330,375 tonnes, the highest level since September 2019.
- Weaker Chinese demand and slower US-bound shipments due to tariffs have coincided with the inventory buildup.
- Speculative net long positions in copper declined by 284 lots to 32,788 lots, the least bullish stance since October 2023.
Inventory Surge Pressures Copper Prices
ING commodities strategists Warren Patterson and Ewa Manthey report that copper prices have come under renewed pressure as inventories on major exchanges have climbed sharply. According to their analysis, London Metal Exchange (LME) copper stocks have reached their highest level since 2019, reflecting a notable inflow into storage locations in Taiwan and Baltimore.
The strategists highlight that this build-up in visible inventory is weighing on the industrial metal, as it signals softer underlying physical demand conditions.
Details on LME Copper Stock Levels
The move in LME copper inventories has been pronounced. As noted by the ING team:
“In industrial metals, copper fell amid a sharp rise in exchange inventories, signalling softer physical demand. Total LME copper inventories jumped by 18,775 tonnes to 330,375 tonnes. This is the highest since September 2019, with most inflows into Taiwan and Baltimore.”
| Metric | Value | Comment |
|---|---|---|
| Change in LME copper inventories | 18,775 tonnes | Recent increase in stocks |
| Total LME copper inventories | 330,375 tonnes | Highest level since September 2019 |
| Key inflow locations | Taiwan and Baltimore | Main drivers of the latest stock rise |
Demand Trends and Trade Flows
The ING strategists link the persistent rise in inventories to weaker consumption trends and changing trade dynamics. As they note:
“Inventories have trended higher this year amid weaker Chinese demand and reduced shipments to the US as tariffs slow trade.”
These developments point to a less supportive demand backdrop, particularly from China, alongside a slowdown in flows to the US market due to tariff-related frictions.
Speculative Positioning Turns Less Constructive
Beyond physical market signals, speculative activity in copper has also become more cautious. Patterson and Manthey observe that positioning by financial players has moderated further:
“Meanwhile, speculative positioning in copper continued to soften, with net bullish bets falling by 284 lots to 32,788 lots. This marks the least bullish position since October 2023.”
The pullback in net bullish bets aligns with the increase in visible inventories and weaker demand signals, adding another layer of pressure to copper prices.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
