Mining News

Copper price down despite tight supply

Copper prices fell on Thursday despite the tight supply and a pledge by the US Federal Reserve to go slow on interest rate rises.

Global stock markets hit record highs after the Fed said it would trim its bond-buying programme but wait for more job growth before raising rates. 

The Bank of England also kept interest rates on hold on Thursday, defying expectations of a rate rise.

Despite the Fed’s move, copper for delivery in December fell 0.5% on the Comex market in New York, touching $4.3005 per pound ($9,461 per tonne).

[Click here for an interactive chart of copper prices]

Global exchange stocks, comprising those in LME, CME and Shanghai Futures Exchange warehouses, have fallen for the last two months.

They stood at a cumulative 232,550 tonnes at the end of October, down 30,000 tonnes since the start of 2021 and down almost 150,000 tonnes from October 2020.

Shanghai stocks currently total less than 50,000 tonnes.

(With files from Reuters and Bloomberg)

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