MARKET COMMENTARY
Three month LME copper prices traded within a range of USD 13,796-14,437 per tonne during August. LME copper prices maintained a strong performance throughout August, supported mainly by concerns over global supply and declining warehouse stocks.
Copper prices were supported by increased shipments to the US ahead of potential tariffs on refined copper, which led to a significant reduction in LME warehouse stocks. The depreciation of the US dollar and the Democratic Republic of Congo’s decision to suspend copper and cobalt concentrate exports also increased concerns over global supply.
LME copper continued to gain during the month, as the temporary suspension of a major copper smelter in Indonesia and declining global copper inventories further strengthened supply concerns. However, stronger US dollar movements and US inflation data, which did not significantly change expectations regarding the Federal Reserve’s next interest-rate decision, caused copper prices to give back some of their gains.
On the supply side, Freeport Indonesia temporarily suspended operations at its Smelting Gresik facility for maintenance and repair work. At the same time, traders continued to redirect copper shipments to the US to avoid the potential impact of future tariffs. As a result, LME copper stocks fell to their lowest level since January, highlighting continued concerns over the global supply-demand balance.
Towards the end of August, copper prices remained firm as China, the world’s largest copper consumer, announced further fiscal measures to support economic growth. On August 26, LME copper reached USD 14,437/ton, its highest level since January 26, 2026.
Despite occasional pressure from a stronger US dollar and ongoing tensions in the Middle East, continued withdrawals from LME warehouses supported copper prices throughout the month. As a result, LME copper closed August at USD 14,285/ton, recording a monthly gain of 3.49%.
