Key Takeaways
- Copper prices rose 0.8% to $14,190 a metric ton.
- Inventories on the London Metal Exchange increased by 800 metric tons.
- Investors remain cautious amid concerns over global tech shares and excess inventories.
Copper prices have rebounded, gaining 0.8% to $14,190 a metric ton by 1000 GMT on Friday, after a sharp decline in the previous session.
The recovery in copper prices came as global stock markets stabilised and the build-up of inventories slowed, according to the London Metal Exchange.
Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, noted that the Nasdaq futures had bounced after a sell-off the previous day, which likely influenced the metals market.
Despite the positive move, investors remained nervous, with concerns that prices could fall further if they break below the September low of $13,925.
Worries about excess inventories eased after daily data showed that LME copper stocks rose by 800 metric tons, having increased by a fifth over the past week to 273,750 tons.
In China, inventories in warehouses registered with the Shanghai Futures Exchange fell by 26.5% in a weekly report, indicating a reduction in stock levels.
However, investors were still concerned about the overhang of stocks in the United States, which has attracted significant flows of copper due to speculation about potential government tariffs.
Nickel was the worst performer on the LME, giving up 1.8% to $15,825 a ton as traders awaited clearer signals from Chinese companies considering coordinated output cuts at their Indonesian operations.
The International Nickel Study Group forecast a small global surplus this year, reversing an earlier deficit forecast.
Today we’ve got the Nasdaq futures bouncing after that sell-off yesterday, and that’s probably why we’re seeing some metals investors getting back in.
Ole Hansen, Head of commodity strategy at Saxo Bank in Copenhagen
