Copper Stock Pressure Mounts as LME Prices Slide

Copper markets are experiencing a notable decline in LME prices amid rising global supply and stock pressure.

Stock Accumulation Spikes

■LME Copper inventories rose 7.2%, pushing prices down to $9,500/ton.

■China added 12.3 kt of additional stock in Q1 2024, increasing global supply by 1.5 kt.

■Major producers BHP and Rio Tinto announced a 4 % capacity increase.

Supply‑Chain Concerns: The Raw‑Material Core

■Declining demand for by‑products such as silver and nickel slowed copper production by 3 %.

■Inflation and rate hikes reduced consumer demand in Turkey, with retailers like BİM and Şok cutting copper consumption by 2 %.

■The U.S. Federal Reserve’s 0.25 % rate hike raised global borrowing costs.

Technical Indicators: Trend Lines Shift

■The Fibonacci 61.8% retracement level found support at $8,700/ton.

■The upper layer of the Ichimoku Cloud presents resistance at $9,200/ton.

■The 50‑day moving average shows buying pressure at $9,400/ton.

Factors Investors Should Watch

■Sustainability reports: Companies are demanding 5 % more copper to reduce carbon footprints.

■Political tensions in the Middle East: Energy price fluctuations could indirectly affect copper production.

■Risk appetite in financial markets: High volatility fuels short‑term speculative moves.

Markets will likely see short‑term price corrections driven by stock pressure, but long‑term demand driven by supply constraints and sustainability goals may support prices.