Copper drops 2.15% as Chinese imports hit six-year low
Copper prices fell 2.15% to $14,496.3 per tonne on September 10. This decline follows record highs and a sharp drop in Chinese physical demand.
Copper traded at $14,496.3 per tonne on September 10. The metal lost 2.15% in value during the session. This price action marked a sharp reversal from recent record highs. The drop reflects immediate pressure on the spot market.
According to GN auto markets/commodities: copper prices, the decline was driven by profit-taking. Downstream buyers reduced their orders due to high costs. Physical demand signals weakened significantly. The market is repricing based on actual consumption data.
Chinese import volumes hit six-year low
Unwrought copper imports in China fell to 382,000 tonnes in August. This is the weakest August level in six years. High metal prices compressed margins for fabricators. End-users delayed purchases to protect their cash flow.
The disconnect between speculative momentum and real consumption widened. Refined copper flows into the region slowed down. This trend highlights the limits of current price levels. Industrial consumption is not keeping pace with spot costs.
Inventory buffers reshape global supply dynamics
Comex warehouse stocks rose to a record above 695,000 tonnes. This accumulation occurred ahead of potential US import duties. The inventory buffer creates downside risk for futures prices. A delay in tariff implementation could trigger sell-offs.
London Metal Exchange stocks also saw a modest recovery. This helped ease prompt tightness outside the United States. The severe backwardation in the forward curve has tempered. The market structure is shifting from scarcity to surplus.
Macro factors increase holding costs
Hawkish central bank expectations have increased holding costs. The US dollar has firmed against other currencies. This makes dollar-denominated base metals more expensive. Institutional capital flows turned defensive during the session.
Geopolitical tensions pushed crude oil prices above $100 per barrel. This reignited global inflationary concerns. Mining and refining operating costs are rising. Speculative positions are being trimmed in response to these risks.
