FX.co ★ Copper Falls on Rising Stockpiles

Copper futures declined by approximately 2% to $5.9 per pound on Tuesday, concluding a three-day upward trend. This decline comes as increased inventories in China indicate a dip in demand within the world’s largest consumer of metals. Recent data reveals that copper stockpiles in the warehouses of the Shanghai Futures Exchange soared to an unprecedented seasonal peak last week. Additionally, COMEX copper inventories exceeded 500,000 tons for the first time recently, while stockpiles at the London Metals Exchange reached their highest point since May 2025. As a result, total global holdings have surpassed 900,000 tons. Despite these challenges, copper is still benefiting from a weaker dollar, influenced by geopolitical, trade, and monetary policy uncertainties. Moreover, the metal continues to receive support due to increasing interest from retail investors and industrial applications, driven by the global transition towards renewable energy and advancements in artificial intelligence.