Copper Rises for a Sixth Day Toward Record on China Tightness

(Bloomberg) -- Copper advanced for a sixth day toward a record as falling inventories and pre-holiday buying signaled tightening supplies in China's physical market.

The metal is heading for its longest run of gains in four months. While some imported copper has arrived in China, much of it has gone directly to fabricators rather than warehouses, keeping spot supplies constrained, according to Shanghai Metals Market.

Demand is also getting a seasonal boost as some downstream manufacturers stock up ahead of the Mid-Autumn Festival and National Day holidays, SMM said in a note. Copper cathode inventories in Shanghai, a major trading and consumption hub, fell to 43,900 tons, the lowest since 2023, according to weekly data released by SMM on Monday.

The three-month copper on London Metal Exchange rose 0.6% to $14,745 a ton by 10:45 a.m. Shanghai time. All other LME base metals also gained, while iron ore futures in Singapore ticked lower.