Copper Prices Hold Firm Amid Supply Constraints

Copper futures edged lower toward $5 per pound on Tuesday but remained near three-month highs, supported by persistent supply tightness and continued flows to the US ahead of a pending tariff decision. Stockpiles at the London Metal Exchange fell again last week, dropping to 91,275 metric tons—the lowest level in nearly two years. Meanwhile, inventories tracked by the Shanghai Futures Exchange declined by 19.11% to 81,550 metric tons, marking a one-month low. Since the Trump administration launched an investigation into copper imports in February, an estimated 400 kilotons have been front-loaded into the US market in anticipation of potential tariffs. This rush has intensified the supply squeeze in other key markets. In China, the world’s top copper consumer, factory activity unexpectedly expanded in June, according to the Caixin PMI. The rebound was driven by increased government support aimed at countering the economic impact of rising US tariffs.