Copper markets showed cautious stability early Tuesday, with London Metal Exchange (LME) three-month contracts hovering at $9,547 per metric ton after a 0.7% drop in U.S.
Comex futures to $4.5785 per pound.Prices fluctuated within a narrow band overnight as traders digested the partial U.S.-China tariff rollback announced Monday, which temporarily cut Chinese duties on American imports from 125% to 10%.The tariff relief initially fueled a 1.1% rally in LME copper on Monday, but momentum stalled as analysts noted remaining U.S.
import taxes at 30%.
Physical traders reported muted buying activity in Shanghai, where inventories fell just 10% last week compared to prior 23.5% drops.Chiles 14% annual production decline through March and Perus stagnant output exacerbated supply concerns, with LME stockpiles shrinking to 190,750 tons their lowest since April 2023.Copper Market Faces Near-Term OversupplyTechnical indicators signaled consolidation, with the 50-day moving average at $9,412 acting as support.
The Relative Strength Index (RSI) held at 47.7, reflecting balanced momentum, while Bollinger Bands tightened to their narrowest range since February.Copper Prices Hold Steady as Traders Weigh Tariff Relief Against Supply Risks.
(Photo Internet reproduction)A decisive break above $9,600 could trigger short-covering, but bears point to weakening MACD divergence and resistance at Mays $9,884 high.
Futures volumes dipped 12% overnight as institutional players awaited clearer demand signals.The Sprott Copper Miners ETF (COPP) saw $2.3 million in outflows Tuesday morning, extending its 4.7% monthly decline.
Goldman Sachs maintained its bullish stance, citing accelerated U.S.
inventory drawdowns and upgrading its Q3 target to $9,150 per ton.Market participants now focus on Wednesdays U.S.
CPI data and Chinas industrial production figures.
The International Copper Study Group forecasts a 300,000-ton surplus this year, contrasting with projected deficits in 2026.Traders are balancing near-term oversupply risks with structural deficits driven by aging mines and growing green energy demand.
The copper markets ability to hold above $9,500 this week may set the tone for summer trading.