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METALS-Copper slips after data shows jump in LME inventories
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METALS-Copper slips after data shows jump in LME inventories
Aug 5, 2025 5:52 AM

(Updates with official prices)

By Pratima Desai

LONDON, Aug 5 (Reuters) - Copper prices eased slightly

on Tuesday after data showed stocks had risen on the London

Metal Exchange while expectations of rate cuts in the United

States and concern about possible disruption of supplies from

Chile limited selling.

Benchmark copper on the LME traded 0.5% lower at

$9,642 a metric ton in official rings from an earlier session

high at $9,747.5 a ton.

Copper stored in LME registered warehouses rose by 14,275 tons to a total of 153,850 tons, marking a gain

of 70% since late June.

Producers, consumers and traders typically put their surplus

metal on LME warrant - a title document conferring ownership.

Traders say the copper delivered to LME warehouses is likely

to have been produced in China, which is the world's largest

copper consumer, accounting for more than half of global

consumption estimated at around 26 million tons this year.

The market is also focused on Codelco's El Teniente copper mine

where operations were halted due to the death of six people

after an earthquake last week.

El Teniente produced 356,000 tons of copper last year.

Traders said the market impact would depend on the length of

the stoppage, which was not yet clear.

Surprisingly weak U.S. jobs data last week triggered bets on

Federal Reserve interest rate cuts from September causing the

U.S. dollar to weaken and making dollar-priced metals, such as

copper, cheaper for holders of other currencies.

Strong technical resistance for copper is around $9,730

where the 21- and 50-day moving averages converge.

Longer term, copper prices will depend on China's demand.

"Chinese buyers have sort of lived hand to mouth, they

haven't been drawing down stock. At higher prices we did see

them export some metal," said Macquarie analyst Marcus Garvey.

Garvey added the LME price will find a floor when Chinese

buyers return to the market.

Aluminium climbed 0.5% to $2,566 a ton, zinc

added 0.6% to $2,767, lead was up 0.3% at $1,964, tin

retreated 0.1% to $33,185 and nickel fell 0.8%

to $14,950.

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