Copper Prices Increase as Global Stocks Dwindle
The Copper Monthly Metals Index (MMI) rose 2.69% from June to July. Comex copper prices increased, nearing their all-time high from late March. The U.S. announced a potential 50% duty on copper imports, leading to a significant price premium for Comex over LME prices. U.S. copper tariffs have impacted the market, with Comex stocks rising while LME stocks decline. Global warehouse stocks are depleting as prices climb higher.
Tight supply concerns persist in the copper market due to the dominance of Russian material, Chinese smelters accepting record-low processing fees, and decreasing U.S. dollar value. The U.S. dollar’s decline has supported commodity prices like copper. Tariff threats have boosted copper prices in the short term, but global growth concerns linger due to ongoing trade negotiations and new tariffs.
Expectations of green energy development have fueled previous copper price increases, but the reality of the market has fallen short. Reports suggest China’s EV sector may be in a bubble, and global inventory stocks, while decreasing, remain at relatively high levels. The impending implementation of copper tariffs may lead to a shift in market dynamics and potential demand destruction in the U.S.
Read more at Yahoo Finance: Global Copper Stocks Dwindle On Tariff Concerns