The recent rise in copper prices is not without a trace. Firstly, there has been a significant decrease in copper inventory at the LME warehouse in Gwangyang, South Korea, with the cancellation of 8000 ton copper warehouse receipts, which directly reflects the increasing demand for copper in the market. This reduction in inventory is often seen as a prelude to the rise in copper prices.

Supply side tension

On a global scale, the mining and supply of copper have been influenced by multiple factors, including political stability, labor issues, and environmental regulations. These factors work together on the supply side of copper, causing a tight supply situation. When there are problems on the supply side, copper prices naturally rise.

Recovery on the demand side

On the other hand, as the global economy gradually recovers, the demand for copper in major consumer sectors such as manufacturing and construction is beginning to recover. Especially in China, as the world's largest copper consumer, the discount on imported copper has narrowed, indicating an increasing demand for copper in the market.

Analyst's Deep Insights

Analysts from well-known institutions have provided further perspectives on the analysis of the copper market. They pointed out that the decline in copper inventories on the Shanghai Futures Exchange is not only a simple inventory adjustment, but also a reflection of market confidence. The increase in confidence indicates that copper prices may perform better in the second half of 2024.

It is worth noting that although copper prices have experienced a significant decline since May, analysts have observed that demand for physical copper is steadily recovering. The rebound in demand has provided a solid foundation for the stability and rise of copper prices.

The rise in copper prices is not an isolated event. In the non-ferrous metal market, prices of other metals such as aluminum, nickel, zinc, lead, and tin are also showing an upward trend. This linkage effect reflects the overall market activity and investor sentiment.

Analysts hold a cautious and optimistic attitude towards the future of copper prices. Although copper prices may fluctuate in the short term due to various factors, in the long run, with the gradual recovery of the global economy and the growth of demand, copper prices are expected to remain stable or further rise.