According to the International Copper Study Group, the copper market went from a supply surplus to a 50,000 -ton supply deficit in April, says Thu Lan Nguyen, head of FX research and Commerzbank raw materials.
Copper stocks in the LME have recently seen strong exits
“The downward trend of the previous month has continued. In general, however, there was still a supply surplus of 233 thousand tons during the first four months, almost unchanged compared to the previous year. However, if the trend of the last two months continues, it is likely that the surplus will dissolve quickly.”
“The ICSG recently predicted a surplus of almost 300 thousand tons for the year as a whole. This would require the situation of supply to improve again in the coming months. The latest reports that Chinese copper founders want to increase their exports to replace the stocks of the LME at least indicate that the supply is not yet too adjusted.”
“However, such concerns will probably persist as long as the reduction of imports from the US continues due to fears of American import tariffs to copper. This is the main reason why copper stocks in the LME, as well as in China, have recently seen strong departures.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
