04.02.202603:41:17UTC+00Copper Slips on Rising Inventories

Copper experienced a decline of approximately 1% to settle at $6 per pound on Wednesday. This marked a pullback following gains in the previous session, influenced by increasing inventory levels in key trading centers such as Shanghai, London, and New York. Unlike gold and silver, which rose for a consecutive second day due to safe-haven demand, copper diverged as traders weighed the effects of subdued physical demand and plentiful supply. On Tuesday, copper had achieved an impressive surge of nearly 5%, marking its most significant single-day rise since November 2022. This surge was largely spurred by a widespread recovery in metal prices after an unprecedented drop. Chinese manufacturers contributed to this trend by replenishing their stocks at reduced prices, and a government-supported industry consortium encouraged authorities to bolster the nation’s strategic reserves of copper. In corporate news, Glencore reached an agreement to divest 40% of its interests in two African copper ventures to a U.S. government-supported entity, a move aligned with Washington's efforts to gain enhanced control over essential minerals.