Copper Above $14,200 a Ton, With Global Inventory Shifts in Focus

By Giulia Petroni

Copper prices traded above $14,200 a metric ton, supported by a weaker U.S. dollar and persistent concerns over tight physical supplies, even as a sharp rise in LME warehouse stocks offered some relief.

"A surge in deliveries into LME warehouses helped ease the market's most acute tightness," analysts at ANZ said. "Nevertheless, concerns over import tariffs mean the U.S. could still draw additional metal from international markets."

In early European trading, three-month futures on the London Metal Exchange rose 0.5% to $14,252 a ton, putting prices up nearly 5% this month. A close above $14,215.50 would set a record settlement high, according to LSEG data. The intraday record is $14,527.50, set in January.

Copper's gains have been fueled in part by expectations that potential U.S. tariffs will pull more metal into the country, tightening supplies elsewhere. But a recent build in LME inventories has eased some of that pressure and helped cap prices in the short term.

The metal has also benefited from a weaker dollar as traders have pared expectations for an imminent Federal Reserve rate increase. Lower rates can support industrial metals by weakening the dollar and reducing the cost of financing inventories.

Analysts at Morgan Stanley see copper at $14,250 a ton in the fourth quarter, saying the U.S. decision on tariffs remains the key catalyst for the market in the second half of the year. However, they remain more cautious on next year's outlook, as U.S. demand could weaken if tariffs are imposed or ruled out, while additional mine supply could make the global market more comfortable.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

August 24, 2026 06:12 ET (10:12 GMT)