This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEAAP0BV_M.jpg
On Wednesday, the on-warrant copper inventory at the LME increased by 5.7%, marking a stark contrast to the situation three months ago when stocks fell to their lowest in almost two years. This fluctuation is indicative of the unpredictable nature of supply and demand in the market, which can be influenced by individual trades and specific market strategies.
Despite predictions of a rally driven by a revival in Chinese demand, consumption by green technology, and tight supply, copper prices have remained largely unchanged year-on-year. This has led to disappointment among copper bulls who had high expectations for the metal this year.
The high treatment and refining charges by smelters suggest that raw materials used to make refined copper are relatively abundant. This is another indication that the copper market remains well supplied. The world’s top copper consumer, China, has been posting weaker-than-expected economic data, which has also put pressure on the metal.
A significant portion of recent copper inflows has been directed towards European and American warehouses. Manufacturing metrics, a crucial source of demand, in both regions have shown that the sector has been contracting for several months.
As of 5:31 p.m. GMT on Wednesday, copper futures added 0.3% to trade at $8,414 a ton on the LME. Other metals were mostly higher, with zinc adding 2% and tin rising 0.6%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
