- Copper firms on supply tightness, LME stocks stable
- Elevated prices slow down physical trades
LME copper prices registered a strong w-o-w gain of around 3%, with the three-month contract rising to $11,870/t on 19 December from $11,515/t on 12 December, supported by tightening supply expectations, while still holding well above historical averages.
LME copper stocks remained rangebound at around 164,000–165,000 t over the week, showing no major drawdowns despite the w-o-w rise in prices.
Prices have inched closer to the psychologically important level of $12,000/t, touching a record high of $11,952/t during trading last week.
Participants noted that expectations of constrained concentrate availability into 2026 continued to support bullish positioning even as year-end liquidity thinned.
However, the sharp rise in LME prices has started to create resistance in physical markets. In India, higher LME levels have made procurement more expensive, leading buyers to remain selective. Imported copper scrap and cathode offers moved up in line with futures, but higher prices widened the gap between buyer bids and seller offers, keeping spot trades limited. Many buyers preferred to delay purchases rather than chase higher numbers late in the month.
Market sources also highlighted that the late-December price rise was amplified by lower trading liquidity, with fewer participants active ahead of the Christmas and New Year holiday period. As a result, price movements have been sharper than usual, even without major fresh triggers.
Looking ahead, copper prices are expected to remain firm, with the $12,000/t level acting as a key psychological threshold. Any further upside will depend on how the market reopens after the holidays and whether supply-side constraints continue to dominate sentiment. For now, LME copper remains well supported, though physical buying is likely to stay cautious due to elevated prices.
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