The copper market has posted sizable gains this morning, and has reached the highest price levels for over a week. However, many traders have taken note of the recent pattern of rising copper stocks this week, with LME Copper Stocks overnight pegged at 398,075 tons for another gain of 800 tons. On the other hand, weekly Shanghai Deliverable copper stocks were pegged at 129,250 tons for a decline of 1,114 tons. The copper market received news of lower annual copper output from Peru overnight, but with their December output number showing an increase, some traders feel that there will only be limited price support from the supply side of the equation. A major credit ratings agency has warned that the United States has a small but increasing chance that their sovereign debt credit rating may be reduced, which may ultimately have an impact on future US industrial copper demand.
Join the Discussion