Copper slips as LME stocks climb

Benchmark three-month copper on the London Metal Exchange fell 0.56% to $14,242.5 a metric ton by 0300 GMT on October 26, 2026. The price decline came as traders reacted to a rise in exchange inventories and broader concerns about demand for the industrial metal.

London prices softened after a period of strength that had recently seen the metal reach a record high of $14,875 a ton on September 11. The latest move reflects a shift in focus from earlier supply concerns to the impact of growing stocks and an uncertain macroeconomic outlook.

Copper stocks in London Metal Exchange warehouses surged over the prior week to their highest levels since July. The increase followed a batch of deposits into LME-registered warehouses, with most of the additional tonnages located in North America.

The inventory build has eased earlier worries about tight supply on the exchange. Higher visible stocks have eased supply worries, reducing the urgency of near-term buying and putting downward pressure on prices.

Expectations of a potential tariff on imports of refined copper into the United States have altered trade flows and contributed to recent price dynamics. Anticipation of such measures has drawn more metal into the US market, reducing stocks in other regions.

This pull of material into the United States earlier helped push LME copper to its record high in September. As inventories on the exchange have since rebuilt, those earlier price gains have partly unwound, feeding into the current softer tone in London copper trading.

Market sentiment toward copper is described as bearish amid macroeconomic fears and shifting flows of metal into the US. Concerns about global growth are particularly important for copper, which is widely used in electrification, construction and consumer goods.

High energy prices are adding to the pressure by dampening global economic sentiment and weighing on demand expectations. Costlier energy can raise production expenses and slow activity in energy-intensive sectors, limiting appetite for growth-linked metals such as copper.

The softer tone in copper trading is mirrored across other base metals on the London Metal Exchange. Aluminium (Aluminium) prices declined 0.41%, zinc dipped 0.09% and lead fell 0.18%.

Nickel recorded a larger loss of 1.19%, while tin declined 0.24%. The across-the-board pullback underscores cautious risk appetite in the industrial metals complex as traders weigh inventory trends and macroeconomic risks.

The most-traded copper contract on the Shanghai Futures Exchange rose 0.55% to 108,720 yuan a ton. The move followed Friday’s overnight gains on the London Metal Exchange and highlights differing regional dynamics in copper trading.

The uptick in Shanghai suggests that, despite bearish signals from rising LME inventories and macro concerns, some markets continue to respond to earlier price strength and local factors. This divergence adds another layer of complexity to the global copper outlook.