Global copper exchange inventories have climbed above 1 million tonnes for the first time in 21 years, marking a significant shift in the copper market and adding pressure on prices. Stocks held across major exchanges, including the London Metal Exchange, COMEX, and the Shanghai Futures Exchange, have risen steadily amid slower demand growth and increased refined copper supply.
Analysts attribute the build-up in inventories to softer industrial activity in key consuming regions, alongside higher output from smelters and improved mine supply. The rise in visible stocks has weighed on copper prices, as ample availability reduces near-term supply concerns for manufacturers.
Despite the near-term surplus signal from exchange inventories, longer-term fundamentals remain supported by expectations of rising copper demand from energy transition sectors such as electric vehicles, renewable power, and grid expansion. The latest data, however, underscores the current imbalance between supply and demand in the global copper market.