Copper prices on LME decline due to stock increases and a strong dollar

On Monday, copper prices on the LME declined as stocks in approved warehouses increased and the US dollar gained value. However, better-than-expected credit data from China partially offset this drop.

The benchmark copper price on the LME fell by 0.7 percent to 9,594 dollars per metric ton, trading just above its 100-day moving average. Total copper stocks on the LME reached 109,625 tons. Notably, more than 26,000 tons of copper that had been earmarked for delivery but were made available for re-trading drew attention.

The developments follow President Trump's decision to impose a 50 percent import tariff on copper, effective August 1. Industry representatives state that while such measures were expected toward the end of the year, there is not enough time left for shipments from Asia to the US.

Increasing supply pushed the price difference between spot and three-month copper futures to 50 dollars, reaching the highest level since April 23. Total social financing in China rose to 8.9 percent in June, indicating that credit incentives are supporting demand. China's housing price, industrial production, and GDP data to be released this week will provide further clues regarding copper demand.

Declines were also observed in other LME metals. Aluminum, zinc, lead, and nickel fell by 0.7 percent, while tin remained stable at 33,625 dollars.

News Source: 12punto