Copper prices on the London Metal Exchange (LME) topped $ 10,000 / t during intraday trading for the first time in four months as warehouse stocks depleted significantly today.
The three-month copper contract hit a high of $ 10,186 / t during the morning session, the first time the red metal has broken above $ 10,000 / t since mid-July.
Prices have been supported by a continued decline in warehouse inventories in recent weeks.
There was a cancellation of 33,000 tonnes of copper stocks in the LME warehouse system today, the majority of which was in Rotterdam. Cancellations for copper amounted to 92.2 pc today against 74.95 yesterday.
Mandatory copper stocks in the LME warehouse system stood at 14,150 t after the cancellation, down 69.8% from yesterday’s level. Of the remaining stocks, 7,725 t are in Rotterdam and 5,375 t in Hamburg. The remainder is divided between Bilbao, Singapore and Kaohsiung.
Copper stocks have declined by 100,050 t over the past two weeks.
Rising energy costs, power shortages, logistics issues and subsequent impacts on supply have recently boosted bullish sentiment in the copper market, which has further helped prices.
Supply problems worsened today when large resource firm Rio Tinto lowered its forecast for mined and refined copper production for the year to 500,000 t and 190,000-210,000 t, from 500,000 t. -550,000 t and 210,000-250,000 t, respectively.
The company has also postponed the start of sustainable production at its large Oyu Tolgoi mine in Mongolia to January 2023, up from an earlier target of October 2022.
By Corey Aunger
Argus Media Limited published this content on October 15, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 15, 2021 12:01:10 PM UTC.