Key Moments
- LME copper prices slipped about 1% after a sharp advance driven by news of a temporary pause in planned US strikes on Iran.
- The metal has fallen roughly 10% over the month, a decline that has spurred renewed purchasing interest from Chinese buyers.
- Mysteel reported a 78,700-tonne weekly drop in inventories to 486,200 tonnes, marking the largest inventory draw so far this year.
Market Overview
ING strategists Ewa Manthey and Warren Patterson report that copper prices on the London Metal Exchange (LME) are softening following Monday’s strong advance, which came after a temporary halt in US plans to strike Iran’s energy infrastructure. The initial rally has partially reversed as the market reassesses geopolitical developments and demand indicators.
Price Action and Geopolitical Backdrop
According to ING, “Copper prices on the LME fell around 1% this morning, giving back part of Monday’s rally after President Trump announced a temporary pause in planned US strikes on Iran’s energy infrastructure.”
Sentiment weakened further after Tehran rejected suggestions of any active diplomatic discussions. As the strategists note, “The renewed decline followed Tehran’s denial of any ongoing negotiations.”
Monthly Decline Spurs Chinese Demand
The metal remains under pressure on a monthly basis, with ING highlighting that “Copper is down around 10% this month, though the pullback has attracted renewed Chinese buying.” The recent correction appears to have drawn in physical buyers, particularly from China, who are taking advantage of lower price levels.
Inventory Trends Signal Stronger Physical Offtake
Fresh data from Mysteel points to a notable tightening in visible stocks. ING cites that “Mysteel data shows inventories fell by 78,700 tonnes last week to 486,200 tonnes – the largest weekly draw this year – highlighting improving physical offtake after the recent correction.”
| Metric | Latest Value | Change | Comment |
|---|---|---|---|
| LME copper price move (this morning) | Fell around 1% | Negative | Gave back part of Monday’s rally |
| Monthly copper price performance | Down around 10% | Negative | Pullback has drawn renewed Chinese buying |
| Mysteel reported inventories | 486,200 tonnes | -78,700 tonnes week-on-week | Largest weekly draw so far this year |
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