Copper Prices Fluctuate Amid Production Cuts, Inventory Drawdowns, and Market Uncertainties

Published: Aug 29, 2024 18:41

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[SMM Analysis] Since the series of news about "Chinese smelters may cut production" emerged on March 13, copper prices have continued to rise. During this period, geopolitics, the trend of the US dollar, China's macroeconomic benefits, and the COMEX warehouse squeeze event pushed copper prices to a new historical high in May. As the bullish funds retreated from high positions, and the negative feedback from consumption side due to the bleak start-up of downstream industries under high copper prices, copper prices have gradually declined since June. At the beginning of August, the market briefly traded on the logic of recession, and LME copper fell to US$8,714 per ton, before rebounding slightly to US$9,200 per ton. During the continuous decline of copper prices from June to August, SMM's electrolytic copper social inventory showed a significant drawdown. Will the global overt inventory increase or decrease? For details, please refer to SMM analysis...

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