Copper: Physical demand supports prices – ING

ING’s Warren Patterson and Ewa Manthey highlight supportive fundamentals for Copper, with tightening LME warehouse dynamics and strong physical demand. They note a sharp jump in cancelled warrants, particularly in Asia, pushing cancellations to about 43% of inventories, while on-warrant stocks fall to multi‑month lows as shipments are diverted to the US ahead of a review of import tariffs.

LME stocks tighten as warrants jump

"In base metals, copper found support from tightening LME warehouse dynamics. Cancelled warrants surged by more than 23kt on Monday — the largest one-day increase since May — after ten consecutive sessions of declines."

"Most cancellations have been reported in Taiwan, South Korea and Singapore. The move pushed cancelled warrants to around 43% of total LME inventories."

"It highlights strong physical demand and continued shipment diversions to the US ahead of the Trump administration's review of copper import tariffs."

"Meanwhile, on-warrant stocks fell to their lowest level since February, while total LME inventories extended their decline for an 18th consecutive session."