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Copper Price eases to £7.50/kg as stocks increase to 180kT

July 2, 2024by Ruth Smart

Over the last month the price of copper has eased from over £10/kg back to £9.51/kg, where it was in April. The price easing appears to have been caused by lower than expected demand which has resulted in LME bonded stock increasing from 118kT to 180kT.

I expect the price of copper to drift lower as traders wait for signs of economic recovery in China. The current price may seem high but is lower than in March 2022 so for copper producers the last two years have been painful.

The increase in LME bonded stock should smooth out copper price changes as it provides a buffer against wild swings and speculation. Hopefully there will now be a period of relative stability in the price of copper although long term issues remain as it is difficult for producers to justify investment in additional capacity at the current price.