Copper gains on mounting supply concerns and expectations of stimulus.
Copper yesterday settled up by 0.26% at 714.3 as mounting supply concerns and expectations of government stimulus outweighed evidence of low purchasing activity. Major market players continued to flag concerns that copper supply cannot keep up with expectations of long-term demand, as metal is a key raw material for the transition to renewable resources. Copper inventories at the Shanghai Futures Exchange fell to under 135 thousand tonnes in May, the lowest this year, and those at the London Metal Exchange were under 60 thousand tonnes, the lowest since 2005. Also, Chile said this year’s output is estimated to sink as much as 7% after the 10.6% decline in 2022.
