Tuesday, 02 January 2024 12:17 GMT

Copper Stays Strong As Supply Tightens And Investors Watch For Shocks


(MENAFN- The Rio Times) Copper prices settled near $4.66 per pound on September 15, 2025, as new figures confirmed a clear story: supply keeps falling short and buyers everywhere feel the squeeze.

On trading floors from London to New York and Shanghai, traders reacted to a real crunch in copper stocks after another week of weak deliveries from top Asian refineries and headline-making shutdowns, including at Indonesia's Grasberg mine.

This backdrop has pushed official warehouse inventories down by nearly 40% below the usual five-year average. With fewer bars in storage and mines unable to ramp up, the market found support even when global news remained mixed.

American buyers continued to step in, eager for copper that's needed everywhere from electrical grids to car factories. While Chinese industrial demand sees ups and downs, production cuts keep local suppliers busy just keeping up.

Looking at investor data, copper ETFs showed more money flowing back in this week after a tough August - when fresh trade worries and interest rate jitters scared some funds out.



Now, cautious optimism builds as hopes rise that central banks may soon ease borrowing costs, making metals more attractive again. Technical charts, using trusted signals like moving averages, show why traders felt confident holding positions.

Prices stayed above the key support between $4.58 and $4.62, while attempts to push higher stopped just below resistance at $4.67.

Nearly every indicator - from Bollinger Bands to MACD and RSI - points to a market in equilibrium: not too hot, not too cold, but under pressure as real copper stays scarce and liquidity ebbs and flows.

The Global Liquidity Index NDQ on the charts added one more clue: when money flows into the system, price and trading volume tick up, which happened several times last week.

It shows how much copper's fate ties into investors' willingness to take risks during tight supply. The result is a finely-balanced copper market.

News about disrupted shipments or shifting monetary policy quickly moves prices, but underneath it all, the truth remains constant: there just isn't enough copper in the system right now.

Until that changes, buyers can only compete harder for each delivery, while traders and investors watch every new headline for the next move.

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