Copper prices see ten-week rally amid inventory shifts

Copper prices have achieved a historic streak, marking ten consecutive weeks of gains on the London Metal Exchange (LME). This rally is driven by falling inventories outside the United States and a weakening US dollar, which has stimulated demand in Asian and European markets.

While some market indicators point to a real shortage due to dwindling LME-monitored stocks, Julius Baer offers a different perspective. The Swiss private bank suggests the current scarcity may be ‘artificial, not real’ and predicts that prices should retreat to more fundamental levels in the medium term.

Julius Baer notes that while demand narratives regarding data centers and potential US import tariffs are influencing the market, significant volumes of copper are accumulating in US warehouses. The bank estimates total stocks in these facilities could approach 2 million tons, which would exceed an entire year of consumption.