Copper Prices Decline Amid Weak Demand and Speculation Concerns

Copper prices have continued to fall as market attention shifts back to weak demand following speculative buying that drove prices away from fundamentals. According to Jin10, the price of industrial metals on the London Metal Exchange has dropped for the third consecutive day, reaching approximately $12,800 per ton. Since last Friday, copper prices have decreased by 2.9%, facing the worst weekly performance since April. Inventory levels at warehouses in London and New York futures exchanges are at their highest since 2003, highlighting the recent bleak consumption outlook. BNP Paribas has joined Goldman Sachs and other banks in warning that copper prices have exceeded fundamental values. BNP Paribas strategist David Wilson stated in a report that copper prices are "still overvalued," with levels above $11,000 to $11,500 per ton being "almost entirely driven by speculation."