FX.co ★ Copper Prices Hold Firm Amid Supply Constraints

Copper futures slightly declined toward $5 per pound on Tuesday, yet they hovered around three-month highs, buoyed by ongoing supply constraints and continued shipments to the United States in light of an impending tariff decision. Last week, London Metal Exchange stockpiles dropped further, reaching 91,275 metric tons—their lowest point in nearly two years. Simultaneously, inventories monitored by the Shanghai Futures Exchange decreased by 19.11%, hitting a one-month low at 81,550 metric tons. Since February, when the Trump administration began investigating copper imports, approximately 400 kilotons have been preemptively sent to the US market in anticipation of possible tariffs, exacerbating the supply crunch in other significant markets. Notably, in China, the world's top copper consumer, manufacturing activity unexpectedly grew in June, as reflected in the Caixin PMI. This recovery was fueled by enhanced government initiatives aimed at mitigating the economic repercussions of rising US tariffs.