Copper prices continue their July rally as improving sentiment from reduced Middle East tensions combines with fundamental supply constraints, according to ING strategists Warren Patterson and Ewa Manthey. The base metal is receiving strong support from tight physical market conditions and critically low inventory levels across global exchanges. Chinese import demand remains robust despite broader economic concerns, adding further upward pressure on prices.
The supply-demand imbalance appears increasingly pronounced as stockpiles fail to rebuild while Chinese buyers maintain their purchasing activity. This combination of geopolitical easing and structural market tightness is creating a supportive environment for copper at a time when industrial metals face mixed macroeconomic headwinds. Traders are watching Chinese data closely for signs of sustained demand.
FXnCO Insight
Copper’s current rally is underpinned by physical fundamentals rather than pure speculation, suggesting price support may persist even if broader risk sentiment weakens, making it a relative haven within the industrial metals complex.
Source: FXStreet