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Copper stays above $14,000 per tonne as tight supply persists
ING analysts point to low inventories outside the US and ongoing supply constraints, while US tariff expectations are seen as a near term volatility driver.
Copper prices are trading above $14,000 per tonne on the London Metal Exchange and near record levels on Comex, with ING highlighting tight physical supply as the main support, according to FXStreet.
ING analysts Warren Patterson and Ewa Manthey said copper gains have been driven by diversion of metal into the US ahead of potential tariff decisions. They noted this leaves availability tighter elsewhere across global exchanges, helping underpin prices.
FXStreet also linked improving sentiment tied to negotiations around the reopening of the Strait of Hormuz to a boost for industrial metals, with hopes for progress weighing on the US dollar. Lower energy prices were also cited as easing inflation concerns and improving the outlook for growth-sensitive assets.
Looking ahead, ING said copper fundamentals remain supportive, but developments in US tariff policy could increase volatility in the near term, given the market’s sensitivity to changes in availability and trade expectations.
Latest closeCopper $6.753 ▲2.0%