ING’s Warren Patterson and Ewa Manthey note that Copper has rebounded toward $13,000/mt, but elevated exchange inventories continue to weigh on sentiment. Stocks across Shanghai, LME and Comex have climbed above one million metric tonnes, and the bank expects near-term Copper price action to stay choppy until clearer inventory drawdowns or stronger demand signals emerge.

LME Copper recovery faces stock overhang

"Copper rebounded from losses earlier in the week, with LME prices edging back toward $13,000/t yesterday, while trading volumes remained thin amid the Lunar New Year holiday."

"On the supply side, the backdrop remains heavy. Readily available inventories in LME‑tracked warehouses rose for a 26th consecutive day."

"At the same time, combined stocks across Shanghai, the LME and Comex have climbed back above one million tonnes, the highest level since 2003, continuing to weigh on sentiment despite the price rebound."

"Near‑term price action is likely to remain choppy, with elevated inventories capping upside even as prices stabilise."

"Further gains may require clearer signs of inventory drawdowns or stronger demand signals once Asian markets fully reopen."

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