Global copper inventories have risen to record highs, hitting consumer confidence hard. According to the latest data, on September 26, the latest inventory of London Copper was 166,850 metric tons, an increase of 2,950 metric tons from the previous trading day, an increase of 1.80%. This rise in inventory levels has depressed copper prices and seriously affected consumer confidence in buying.
Chinese smelters actively produce, concentrate processing and smelting costs continue to be high
In China, the world's largest copper consumer, the largest copper smelters continue to pay high prices for processing concentrates. This has encouraged smelters to ramp up production. This not only shows ample supplies of refined copper, but also puts pressure on copper prices.
Replenishment activities in the peak season failed to achieve the expected target, and the trading atmosphere in the spot market was weak
In China, although entering the traditional peak season replenishment period, but for various reasons, the peak season replenishment activities have failed to achieve the expected goal. This has led to a weak trading mood in the spot market, which has also brought some pressure on copper prices.
The price of copper is too high, and the acceptance of downstream buyers is low
The current copper price is still too high, and the acceptance of this price by downstream buyers is low. This has kept a lid on copper prices in the short term, and copper prices are expected to fall today. Nevertheless, we still need to pay attention to the global economic situation and the impact of related policy changes on copper prices.
Overall, a surge in global copper inventories, aggressive production by Chinese smelters and low acceptance of high copper prices by downstream buyers have put pressure on copper prices. However, given the uncertainty of global economic and policy factors, we still need to remain concerned and cautious about copper prices.
