Copper Prices Extend Rally to Sixth Day on Tightening China Supply

Key Facts

Amid growing concerns over limited stockpiles in the world's largest metal consumer, copper prices extended their winning streak to a sixth consecutive session. According to reports, copper on the London Metal Exchange rose 0.7% to $14,763 a ton, driven by clear signs of tightening physical supply. This rally gained further momentum as Shanghai inventories fell to 43,900 tons, marking the lowest level for the red metal since 2023, underscoring robust immediate demand ahead of holiday periods.

These market movements reflect heightened sensitivity to Chinese industrial activity, with reports noting that recent imported shipments have been delivered directly to fabricators rather than being added to exchange stocks. In a broader context, market data from mid-September showed a trade deficit of 1105.6 billion yen in Japan, while Japanese exports grew by 19.3%, highlighting ongoing global trade flows despite inflationary pressures, such as the 3.1% inflation rate recorded in the UK on September 16, 2026.

Looking ahead, copper stands at $14,763 (close September 22, 2026) as traders monitor the sustainability of this trend amid multi-year low inventory levels. With the Federal Reserve interest rate currently at 4% following the September 16 decision by Chair Kevin Warsh, focus shifts to upcoming economic catalysts. Key indicators such as US jobless claims and housing starts, which stood at 1.275 million units in the most recent data, will be critical in determining market sentiment toward base metals.