Copper futures slipped to around $6.55 per pound on Monday, pulling back from recent gains as a sharp increase in exchange inventories eased fears of near-term supply tightness. LME-monitored copper stocks reached 238,575 tons on August 20, roughly 16% above their February low, while SHFE-monitored inventories surged 28.4% last week to 89,548 tons.
The buildup in inventories, together with a pronounced narrowing of the LME cash premium over three-month copper, signaled improved short-term availability and put downward pressure on prices. At the same time, Zijin Mining cautioned that flooding at the Kamoa-Kakula copper complex in the Democratic Republic of Congo could cut its share of output by up to 57,000 tons this year, underscoring ongoing risks to global supply.
A weaker US dollar helped cushion the price decline, while investors looked ahead to the Jackson Hole symposium and remarks from the Federal Reserve Chair for further guidance on the interest-rate outlook.
