Copper Market Under Tension

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Copper Market Under Tension

Copper Market Under Tension

According to Commerzbank, the Copper market is going through a phase of tensions. They added that the market is now facing a supply deficit, which was once a supply surplus. They concluded this after looking at the comments from the International Copper Study Group.

On the LME, strong outflows are seen in the majority of the Copper stocks. This shows that the downward trend in the Copper market continues.

Strong Outflows From Copper Market

However, there's still a surplus supply from the last few months, which remains unchanged. But if the current situation remains unchanged, the surplus will also be gone.

For the entire 2025, ICSG believes that the Copper market will have a surplus of 300,000 tons. In other words, we can expect an improvement in the supply situation during the next few months.

The reports also show that an increase in the exports from the Copper smelters in China is expected. This will be helpful in building the LME's stocks once again. If this happens, it would also indicate that the supply situation is not as bad as it seems.

But in the long term, concerns like this will remain relevant due to geopolitical tensions and trade wars. Also, the USA has put heavy tariffs on Copper imports, which will also affect the market as a whole.

In fact, the US tariffs on Copper imports are a key reason why we are seeing massive outflows from the Copper market. In the long term, the US doesn't want to rely on importing Copper and wants to build its own local production.

If the US no longer needs to import Copper, it would definitely lead to an oversupply of Copper. After all, the USA is a big importer of Copper, and this sudden exit could seriously impact the supply and demand scenario.

The bottom line is that the analysts are expecting an oversupply situation in the Copper market. A situation like this would lower the Copper prices across the world.

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