ING’s Warren Patterson and Ewa Manthey highlight supportive fundamentals for Copper, with tightening LME warehouse dynamics and strong physical demand. They note a sharp jump in cancelled warrants, particularly in Asia, pushing cancellations to about 43% of inventories, while on-warrant stocks fall to multi‑month lows as shipments are diverted to the US ahead of a review of import tariffs.

LME stocks tighten as warrants jump

"In base metals, copper found support from tightening LME warehouse dynamics. Cancelled warrants surged by more than 23kt on Monday — the largest one-day increase since May — after ten consecutive sessions of declines."

"Most cancellations have been reported in Taiwan, South Korea and Singapore. The move pushed cancelled warrants to around 43% of total LME inventories."

"It highlights strong physical demand and continued shipment diversions to the US ahead of the Trump administration's review of copper import tariffs."

"Meanwhile, on-warrant stocks fell to their lowest level since February, while total LME inventories extended their decline for an 18th consecutive session."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)