ING strategists Warren Patterson and Ewa Manthey highlight that Copper has extended its July gains as easing Middle East tensions lift sentiment. They point to tight physical conditions, low inventories and firm Chinese import demand as key supports. They remain constructive, expecting these supply dynamics to keep Copper prices well supported if Chinese demand holds up.

Tight market and China demand support prices

"In base metals, copper also pushed higher, extending its strong July performance as easing Middle East tensions lifted broader market sentiment."

"The market continues to be supported by tight physical conditions, with inventories remaining low and Chinese demand for imported copper keeping premiums elevated."

"Ongoing uncertainty over potential US copper import tariffs is also providing additional support to the market."

"We remain constructive on copper, with tight supply conditions and low inventories likely to keep prices well supported, particularly if demand in China continues to hold up."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)